Brazil has approved joining OPEC+, marking the country's emergence as a major oil producer just months before it hosts the UN climate conference.

The National Council for Energy Policy gave its approval on February 18 following an invitation extended in 2023.

OPEC+ comprises OPEC's 12 members and 10 other oil-producing nations, with Russia being the largest among them.

The expansion comes as the Vienna-based group seeks to strengthen its position in international oil markets.

However, Brazil will not face binding commitments such as production cuts, Mines and Energy Minister Alexandre Silveira told reporters at a press briefing in Brasilia.

"We should not be ashamed of being oil producers. Brazil needs to grow, develop, and create income and jobs," Silveira said, as quoted by the AP, describing OPEC+ as "a forum for discussing strategies among oil-producing countries."

Brazil’s national oil company (NOC) Petrobras is partially publicly listed, so it could not be part of those production cuts commitments. Moreover, other private companies also operate in Brazil, albeit Petrobras’ role is dominant.

Petrobras CEO Jean Paul Prates confirmed to Reuters that Brazil will not cap production, stating "We would never be part of an organisation that imposes (production) quotas to Brazil, Petrobras is a publicly-traded company and we cannot have quotas."

The move comes as President Luiz Inácio Lula da Silva, who began his third term in 2023 positioning himself as an environmental advocate, seeks to balance conservation with oil development.

His administration has pushed for oil exploration near the Amazon River mouth whilst working to reduce deforestation and protect Indigenous rights.

As a result, Brazil's oil sector has seen significant growth in recent years. The country leads South America in oil production and ranks as the world's seventh-largest producer, generating about 4.3mn barrels daily, representing 4% of global output, according to the US Energy Information Administration (EIA).

Crude oil became the country's leading export in 2024 with 3.7mn bpd, comprising 13.3% of foreign sales and overtaking soya, traditionally Brazil's primary export commodity.

By comparison, the US leads global production at nearly 22mn barrels daily, while OPEC's largest producer, Saudi Arabia, produces about 11mn barrels.

The timing of Brazil's entry into OPEC+ has raised questions about the country's commitment to climate goals as the decision comes as it prepares to host the UN climate summit COP30 in November, where discussions about reducing fossil fuel use are expected to take centre stage.

Environmental organisations have voiced strong opposition to the move.

"Brazil's entrance to any OPEC body is another sign of the government's setback," Suely Araújo, spokesperson for the Climate Observatory, told AP.

The network of 133 environmental, civil society and academic groups argued that expanding fossil fuel exploration "indicates that we are choosing solutions from the past in the face of a huge challenge for the present and the future."

The government maintains that oil revenues could help finance Brazil's transition to renewable energy, though critics argue this stance contradicts global efforts to reduce dependency on fossil fuels.

Sources close to the negotiations say Brazil's participation in OPEC+ could give it greater influence over global oil market decisions while maintaining its independence in production decisions.

Industry analysts suggest Brazil's OPEC+ membership could affect global oil markets, particularly as the country's offshore pre-salt fields continue to boost production capacity.