Brazil dances with OPEC

The country, likely to become a major exporter of crude, is serious about joining the cartel and – in the long term – could push up prices.

NEW YORK (CNNMoney.com) — OPEC, the 13-nation cartel that has a huge influence over oil prices, may be expanding further into South America.

News that the second largest economy in Latin America was considering joining OPEC began to swirl late last year shortly after Brazil announced the discovery of huge offshore oil and gas deposits that could turn the country into a major oil exporter.


Politicians, including president Luiz Inacio Lula de Silva, said the country would consider membership in the Organization of Petroleum Exporting Countries as soon as the export potential from the new fields are evaluated.

Analysts say Brazil is serious about joining, and its membership could push crude prices higher as more oil would be under OPEC control, but that membership and significant crude exports from the country won’t happen anytime soon.

Brazil’s interest in joining OPEC is the political clout that membership brings.

CNNMoney.com