New country joins OPEC Plus alliance, 2 DEC

  New country joins OPEC Plus alliance

Baghdad Today - Follow-up

The OPEC+ alliance announced Brazil's access to the oil alliance starting in January 2024, according to a statement issued on Thursday by the 36th OPEC ministerial meeting of oil exporting countries and their allies.

Oil markets have been waiting over the past few weeks to learn about the outcome of the meeting of the ministerial follow-up committee of the "OPEC+" alliance, which was postponed for four days and held virtually today, especially after oil prices lost nearly 15 % of their peak reached in September. September.

Saudi Crown Prince Mohammed bin Salman received on Wednesday in the capital Riyadh, President of the Federative Republic of Brazil Luiz Inácio Lula da Silva, where they reviewed bilateral relations, enhanced joint cooperation, discussed investment opportunities, as well as regional and international developments, according to the Saudi Press Agency.

OPEC+ delegates earlier said Brazil was ready to join the alliance, but a Brazilian official said it was still studying the benefits. The move would draw one of the most important new oil sources affecting global supply growth to the coalition, which is tightening production restrictions.

According to S&P Global data, Brazil's oil production is about 3.2 million barrels per day, and its exports averaged 1.8 million barrels per day in the third quarter of this year, an increase of 40% from the same period in 2022. Higher-than- Expected production growth in Brazil and the United States is helping lift global supply by 1.7 million bpd this year to a record high, according to the International Energy Agency.