OPEC and its allies have been using the wrong target for draining excess stockpiles. As a result, they may have to consider longer and deeper cuts.
A meeting of ministers from OPEC states and their oil-producing allies will take place in Abu Dhabi this week. It will probably be a subdued affair. Oil prices remain stubbornly low despite big output cuts by the so-called OPEC+ group and geopolitical factors such as the U.S. sanctions on Iran.