the visible hand

it is the theory which decides what can be observed – einstein

Brazil dances with OPEC

Posted by ecoshift on February 22, 2008

Brazil could join OPEC in long term, pushing up oil prices – Feb. 22, 2008
The country, likely to become a major exporter of crude, is serious about joining the cartel which – in the long term – could push up prices.
By Steve Hargreaves, CNNMoney.com staff writer
February 22 2008: 4:23 PM EST

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 largest economy in Latin America (see correction below) 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 is 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.

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