Brazil assures US it will increase oil production

Aerial view of the Floating Production Storage and Offloading Vessel (FSPO) “Cidade de Itaguai” oil platform, operating at Santos basin exploration unit of Pre-Salt in Itaguai, about 150 miles (240 km) off the coast of Rio de Janeiro, Brazil on November 10, 2017. – Anchored in water 7,350 feet (2,240 meters) deep, the “Cidade de Itaguai” platform defies nature’s most primal forces — and what until recently were considered humankind’s own limitations. These so-called pre-salt fields contain vast crude oil reserves but at incredibly hard to access depths, requiring a combination of high-tech and simpler things, like extremely long, strong pipes. The oil platform is operated by Brazilian oil company Petrobras and Japanese oil company Modec. (Photo by MAURO PIMENTEL / AFP)

 

BRASILIA, Brazil (AFP) — The Brazilian government on Monday 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 $140 per barrel on March 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.

 

© Agence France-Presse

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