The Brazilian government on Monday (Mar 14) assured the United States it will increase its oil production, a decision that could help ease concerns over global crude supply after Russia’s invasion of Ukraine.
Bento Albuquerque, Brazil’s minister of Mines and Energy, said he had spoken with his US counterpart, Secretary of Energy Jennifer Granholm, and confirmed that Brazil would seek to increase its oil output.
“She asked me if Brazil could be part of this effort (to produce more oil), and I told her ‘Of course it can’. We are already increasing production, while most OECD countries have reduced it. We have increased our production in the last three years,” Albuquerque said in a note sent by the ministry to AFP.
During the conversation, Granholm explained that other countries were making similar decisions to avoid greater volatility in the global oil market.
The Ministry of Mines and Energy did not provide any further details about how much it intends to increase production or on what timeline.
Brazil is among the 10 largest oil producers in the world, producing approximately three million barrels per day.
The price for the Brent benchmark, which reached a near-record price of US$140 per barrel on Mar 7, closed Monday down at $106.90.
After announcing an embargo on fossil fuel imports from Russia as punishment for its invasion of Ukraine, US President Joe Biden has been looking for ways to alleviate the pressure on oil prices, which were already at an elevated level before the conflict began.