Brazil adheres to OPEC+ Cooperation letter; No output caps

The Brazilian energy ministry announced on Tuesday that the country has decided to adhere the OPEC+ declaration of cooperation. This formalizes a decision it first made in 2023.

Brazil is the biggest oil producer in South America. According to the country's oil regulator, its output will reach 4.32 million barrels equivalent per day by 2024.

The group will include nations like Saudi Arabia and Russia, but it is not expected to participate in the coordinated output cap.

KEY QUOTES

In a press release, the Mines and Energy Ministry said that this move showed Brazil's "growing importance in the oil-and-gas market." It added, however, the country will "continue to evolve its energy policy according to its own interests."

The ministry stated that it was important to emphasize that the declaration did not include participation by countries in any decisions taken with the aim of cutting oil production.

ADDITIONAL DETAILS Brazil initially said that it would join the OPEC+ collaboration in late 2023. However, President Luiz-Inacio Lula da So Silva reiterated the intention of the country to act as an "observer" and not a full member.

The government announced that the country decided on Tuesday to join the International Renewable Energy Agency, (IRENA), and the International Energy Agency. (Reporting and editing by Franklin Paul, Leticia Fucuchima)

(source: Reuters)