The Big Question in OPEC’s Production Cut Strategy

Last weekend, OPEC and its partners, led by Russia, decided to extend their combined production cut agreement until the end of the first quarter. Nobody was surprised by that decision, and its effect on oil prices was limited. But the longer the cuts continue, the more pressing one question becomes: how long can OPEC keep doing it? The answer appears easy at first glance. OPEC, Russia, and the Central Asian producers can keep limiting their oil supply as long as it is necessary. Yet not everyone within the OPEC+ grouping is happy with the current…