Latest Cuts Leave OPEC with Fewer Options

Last week, OPEC and its partners from OPEC+ agreed to deepen and extend their production cuts into the first quarter of 2024. The move, almost unanimously seen as a means to propping up oil prices, did not have the desired effect. After an initial jump, benchmarks slid again, with Brent crude dipping below $80 per barrel on Monday morning in Asia. So, it seems that the cuts have, at least for now, failed in their purpose. Of course, the tighter supply may yet be felt on the market, but in the meantime, OPEC—and OPEC+—seems to be running…