Brazil to join OPEC+ in 2024, seeks oil market stability: minister

Brazil will join the OPEC+ alliance from January 2024, in a move that adds South America's largest oil producer to the group's market influence, OPEC confirmed in a statement Nov. 30.

"This is a historic moment for Brazil and the energy industry and we look forward to joining this distinguished group," Brazilian Minister of Mines and Energy Alexandre Silveira de Oliveira said in an speech to OPEC+ ministers during a virtual meeting on Nov. 30. "The OPEC+ agreement has effectively protected the stability of oil markets."

Silveira didn't provide details on Brazil's membership, or whether it would participate in quotas. However, delegates earlier told S&P Global Commodity Insights that the country -- which produces mostly medium-sweet crude from its offshore basins -- isn't expected to participate in cuts.

"Brazil benefits significantly from the stability of oil and energy markets," Silveira said in reference to the role played by OPEC+.

The addition of Brazil to the 10 existing OPEC+ allies led by Russia is a major coup for the cartel, which has struggled to reach consensus on cuts to arrest weak oil prices. Platts, part of S&P Global Commodity Insights, last assessed benchmark Dated Brent crude at $82.28/b on Nov. 29.

Brazil currently produces around 3.2 million b/d of crude and is a major supplier to China, according to S&P Global data.

In October, a high-level OPEC delegation led by Secretary General Haitham al-Ghais met with Silveira in Brasilia. Also in attendance was Jean Paul Prates, CEO of state-controlled oil giant Petrobras.

The company committed earlier this month to increasing investment spending by 31% to $102 billion through to 2028. Under its latest plans, approved by the board of directors, Petrobras expects to pump 2.8 million b/d of oil equivalent in 2024 and 2025, gradually rising to 3.0 million boe/d in 2026 and 3.1 million boe/d in 2027. Oil and natural gas production will peak at 3.2 million boe/d in 2028.