Bolsonaro vai discutir com ministérios sobre convite de ingresso na OPEP

Bolsonaro To Discuss With Ministries About Invitation To Join OPEC

Written by Renato Oliveira

Published on 31/10/2019 at 10:02

Updated on 31/10/2019 at 10:23

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President Bolsonaro Said He Would Need to Talk to Ministers Before Making a Decision but That He Was Eager for the Invitation

During President Jair Bolsonaro’s visit to Saudi Arabia, Brazil was invited to join OPEC (Organization of the Petroleum Exporting Countries).
The statement was made by the president himself, who assured that the invitation will be carefully considered along with his ministers and the ministries of Economy and Mines and Energy. On Tuesday, Saudi Arabia Announced US$ 10 Billion in Investments in Brazil.

Bolsonaro also stated that he was somewhat eagerly awaiting the invitation, as it reinforces the country’s importance as a petroleum producer.
The invitation was received yesterday, Wednesday (30/10), during a meeting with Saudi authorities, including Crown Prince Mohammed Bin Salman.

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The Brazilian president even invited the Saudis to participate in the auction of the Surplus Transfer and made it clear that Brazil is a good environment for investment.

“We can talk about that. I would have to hear from my Minister of Economy and my Minister of Mines and Energy so that, once I announce something in this sense, the promise is kept down the line. I always tend to talk to the ministers before making a decision. After all, it is the best way we have to maintain our credibility. But, particularly, we would like to join OPEC. Yes. We have the potential for that. We have oil reserves larger than some countries that are already in OPEC, said Bolsonaro.

Increase in Production

The invitation to join the organization comes due to the fact that Brazil will become the third-largest producer in OPEC, after Saudi Arabia and Iraq, especially due to the difficulties OPEC is facing in maintaining prices against the growing Brazilian oil production.

According to the International Energy Agency (IEA), the country’s average production will reach 2.9 million this year and 3.22 million in 2020, higher than in 2018, when it produced 2.71 million barrels per day.
In August, Brazilian production Hit a Record and Reached 3.1 Million Barrels per Day.

There have been other invitations for the country to join OPEC; in 2008, Iran invited then-President Luiz Inácio Lula da Silva, but the talks did not advance.
Under Michel Temer’s government, Brazil had a different view from OPEC’s discourse, advocating for increased local production while the organization wanted to curb supply to sustain prices.

Bolsonaro To Discuss With Ministries About Invitation To Join OPEC

President Bolsonaro Said He Would Need to Talk to Ministers Before Making a Decision but That He Was Eager for the Invitation

Increase in Production

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