Brazil rejects bid to join OPEC+

Brazil, the oil producing and exporting country, has rejected an offer by Saudi Arabia to join the OPEC+ deal, which cuts the oil producing countries to support oil prices in the market.

Marcio Felix, a senior official at the Brazilian Ministry of Oil and Gas, told Reuters he had received a phone call last week from an adviser to Saudi Energy Minister Khalid al-Faleh to question possible production cuts.

“They are concerned about the growth of production in Brazil, and we have already explained to them that Brazil can not do that,” Felix said in a telephone interview explaining the Saudis’ interest in Brazilian cuts.

Under the law, Brazil, which produces 2.65 million barrels per day, can not curb production. The country is expected to double its oil production to more than 5 million barrels a day by 2027.

Felix added that Saudi Arabia had continued with Brazil on several occasions to discuss the issue, noting that the Kingdom had not abandoned its efforts to persuade Brazil to join.

The OPEC, Russia and 9 other oil-producing countries, have agreed to cut 1.8 million barrels per day. The agreement is in effect until March 2018, but both Saudi Arabia and Russia, which lead these efforts, have expressed their support for extending the agreement.