OPEC+ and Brazil’s Membership

GS2 -IR 

Brazil’s government has recently approved joining OPEC+, signaling its rising influence as a major oil producer.

 

What is OPEC?

Overview

• Full Name: Organization of the Petroleum Exporting Countries (OPEC).
• Type: A permanent, intergovernmental organization of oil-exporting nations.
• Founded: 1960, in Baghdad, Iraq.
• Headquarters: Vienna, Austria.

Founding Members

• Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.

Current OPEC Members (13 Countries)

• Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, UAE, and Venezuela.

Objectives of OPEC

• Regulate global oil supply to stabilize prices.
• Coordinate petroleum policies among member nations.
• Ensure a fair and stable return for oil producers.
• Provide regular and efficient petroleum supply to consuming nations.

Membership Criteria

• Open to any substantial oil-exporting country that shares OPEC’s principles.

 

What is OPEC+?

Definition

• OPEC+ refers to OPEC members and their allies, including Russia, that collaborate on oil production policies.
• Formed in: 2016.

Purpose

• Expands cooperation beyond OPEC to influence oil markets more effectively.
• Helps stabilize global oil prices through coordinated production adjustments.

 

Brazil’s Role in OPEC+

Significance of Brazil’s Entry

• Officially invited to join in 2023.
• 7th-largest oil producer globally, producing 4.3 million barrels per day (~4% of global output).
• In 2024, crude oil became Brazil’s top export, surpassing soy, and accounting for 13.3% of total exports.

Strategic Importance

• Strengthens OPEC+ influence by adding a major South American oil supplier.
• Enhances Brazil’s role in global energy markets and oil price negotiations.

 

Brazil’s entry into OPEC+ marks a significant shift in global oil dynamics, reinforcing its status as a key oil player while contributing to the organization’s ability to regulate the global oil market.