Brazil has announced that it will join OPEC+ as of January 1, 2024. In addition, it will not be subject to oil production quotas for the time being.
Thus, from next year the alliance will control not 46% of the global oil market, but by various estimates about 50%.
It is also interesting that a de facto alliance between BRICS and OPEC+ has been launched.
On the one hand, one of the founding members of BRICS has joined the oil alliance. On the other hand, Saudi Arabia and the UAE will join BRICS next year.
Brazil's production in September increased by 6.1% compared to August and by 16.7% compared to September 2022.
According to calculations of the Brazilian Institute of Oil and Gas, the country became the ninth largest producer in the world and the first in Latin America.
Jean-Paul Prates, CEO of Brazilian oil and gas company Petrobras, believes that oil production in his country will grow by another 4-5% in the near future.
Therefore, decisions on new OPEC+ production cuts must have taken this factor into account.
Despite the cuts OPEC+'s position will be strengthened by Brazil's joining, as the alliance will take over half of the world market.
