In January, Brazil is expected to join OPEC+, a coalition of oil-producing countries. However, CEO Jean Paul Prates of the state-run oil company Petrobras (NYSE:PBR) said that the South American country won’t participate in the organization’s coordinated crude oil production caps. Moreover, he pointed out that Petrobras is a publicly traded company and cannot have quotas.
The recent development follows a Thursday announcement from OPEC+ that the South American nation would join its organization. Since then, speculations have risen on whether Brazil would participate in the voluntary cuts of 2 million barrels per day set for early next year.
While stating that Brazil’s move to join OPEC+ is a welcome development, the CEO noted that the country will have no voting rights. Still, he added that the move would be crucial to energy transition efforts for both OPEC and Brazil.
Prates expects Brazil to formally join OPEC in June and will attend meetings as an observer member.
What is the Price Target for PBR Stock?
TipRanks analysts remain bullish on PBR stock with a Strong Buy consensus rating based on six Buys and two Holds. After a 101.91% rally in its share price this year, the average PBR price target of $17.55 per share implies 14.22% upside potential.