Brazil's Energy Minister, Alexandre Silveira, has announced that Brazil will become a member of the influential OPEC+ oil coalition starting in January 2024. Silveira made the announcement during a postponed OPEC+ meeting, which focused on the oil output strategy for the upcoming year.

The decision comes at a time when global crude oil prices are facing challenges due to the fragile demand recovery in China, geopolitical risks, and uncertainty over supplies from U.S.-sanctioned OPEC members Iran and Venezuela. By joining OPEC+, Brazil aims to actively participate in addressing these concerns and coordinating with other major crude-producing nations.

During the meeting, Silveira shared in a footage that President Lula da Silva had given his approval for Brazil's membership in the OPEC+ cooperation charter. As part of the government protocol, Silveira mentioned that their technical team would carefully review the content of the cooperation charter received.

Acceptance of the "document of cooperation" is necessary for Brazil's integration into OPEC+. The Brazilian energy ministry confirmed that the country had received an invitation to join OPEC+ and stated that Minister of Mines and Energy Alexandre Silveira is currently analyzing the issue.

The exact terms of Brazil's membership and whether production cuts will be required starting next year are not immediately clear from the available information. It remains to be seen how Brazil's inclusion in OPEC+ will affect its oil production and market dynamics.

Both OPEC+ and its subset, OPEC, have been actively seeking new members to further increase the coalition's market share and strengthen their coordinated policies on supply inventories and prices. This move comes after OPEC members Saudi Arabia, Iran, and the United Arab Emirates were invited to join the BRICS group of emerging markets, which includes Brazil, earlier this summer.

Brazil's membership in OPEC+ underlines the country's commitment to collaborating with major crude producers to stabilize global oil markets and ensure sustainable growth in the energy sector. As Brazil joins the Saudi Arabia and Russia-dominated coalition, it strengthens the organization's influence over global oil supply and prices.

Correction: An earlier version of this article incorrectly stated that Brasilia is a member of the BRICS group. The correction is that Brazil as a country is a member, not Brasilia as a city.