Brazil may join OPEC

At the Future Investment Initiative Forum in Riyadh, Jair Bolsonaro, President of Brazil, expressed his desire to join OPEC, an organization of oil exporting countries. It is reported by Enkorr.

There is no final decision on this issue, the President noted that consultations with inisters of economy and energy are needed.

“In the next few years, Brazil will become one of the five or six largest oil producers in the world. This is very good because it will help stabilize oil prices. Some people even talk about the possibility for Brazil to join OPEC... I would really like Brazil to become a member of OPEC. And I think that we have the potential, we have large oil reserves, more than many OPEC countries”, he said.

Brazil produces about 2.8 million barrels of oil per day. The country is not a member of OPEC, however, it participated in technical consultations on the OPEC+ deal (agreement on limiting oil production) in 2016.

OPEC is an international organization of oil exporting countries, which was created to control the level of oil production, and in turn has an impact on the level of oil prices in the world. OPEC has 14 countries. Today it is: Algeria, Angola, Venezuela, Gabon, Iran, Iraq, Congo, Kuwait, Libya, United Arab Emirates, Nigeria, Saudi Arabia, Equatorial Guinea and Ecuador.

Recall that in early October, Ecuador announced that it could leave OPEC before January 1, 2020. Ecuador is considered the fifth largest producer of “black gold” in Latin America and takes 27th place in the BP ranking – in 2017, the country's oil production amounted to 548.421 thousand barrels per day or 0.7% of world production.

Earlier it was reported that OPEC would reduce oil production due to the “lagging” countries. The reduction volumes for the first half of 2019 were agreed at 1.2 million barrels per day, compared to October 2018. In early July, OPEC+ countries unanimously approved an extension of their agreements on existing conditions for another nine months, until the end of March 2020.

Tags: contracts, oil, legislation, energy market, добыча нефти, Oil refinery plant, ОПЕК+, OPEC, oil transit, export, import

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