In February 2025, Brazil’s government approved its membership in Organization of the Petroleum Exporting Countries (OPEC+) plus, a coalition of 22 major oil-producing nations, marking a significant move for the country. Brazil was officially invited to join in 2023.
- The ‘National Council for Energy Policy’ (Conselho Nacional de Política Energética, CNPE) authorized the move, marking a key step in Brazil’s emergence as a significant contributor in the global oil market.
- This decision comes ahead of Brazil’s role as the host of the 30th United Nations Climate Change Conference (COP30) in November 2025.
Note: As of January 2025, OPEC+ has 22 member countries.
Key Points:
i.Brazil’s participation in OPEC+ is limited to the Charter of Cooperation (CoC), a forum for oil-producing countries to discuss production strategies.
ii.Brazil is the 7th-largest oil producer globally, producing approximately 4.3 million barrels per day, which accounts for 4% of global oil output.
- In 2024, crude oil became Brazil’s top export, contributing 13.3% to the country’s foreign sales, surpassing its soy exports.
What is OPEC?
i.OPEC is an intergovernmental organization established in September 1960 in Baghdad, Iraq, with an agreement signed by 5 founding nations: the Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia (SA), and Venezuela.
ii.Its main goal is to align petroleum policies among members to maintain stable prices, ensure reliable supply to consumers, and offer fair returns to investors.
iii.As of January 2025, OPEC comprises 12 member countries, including Saudi Arabia (SA), Venezuela, Republic of Iran, Iraq, Kuwait , Libya, the United Arab Emirates (UAE) , Algeria, Nigeria , Angola, Equatorial Guinea, and the Republic of the Congo .
What is OPEC+?
i.OPEC+ refers to a coalition of OPEC member countries and 10 other major oil-producing nations that have agreed to collaborate on oil production targets to influence global oil prices.
- The non-OPEC countries which export crude oil are termed as OPEC + countries.
ii.This alliance was formalized in 2016 and includes countries such as Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, Sudan with Russia being the largest non-OPEC member.
iii.OPEC consists solely of its 12 member countries, while OPEC+ includes these members plus additional non-OPEC oil-producing nations.
About Brazil:
President– Luiz Inácio Lula da Silva
Capital- Brasília
Currency- Brazilian Real (BRL)
