OPEC’s conundrum continues

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Oil is rallying for a second consecutive day, with continued positive momentum from yesterday’s weekly inventory report, in combination with rising hopes of deeper and/or longer production cut commitments by OPEC. (OPEC cuts are starting to feel like QE at the turn of the decade: omnipresent). Hark, here are five things to consider in oil markets today.    

 

1) Yesterday we discussed the impending restart to export flows of Nigeria’s Forcados crude, as an export pipeline gets back up and running after militant attacks last year. Nigeria has suffered outages to a number of key grades such as Qua Iboe, Brass River and Bonny Light in the last year or so, but as our ClipperData illustrate below, we are seeing flows of most of these grades getting back up to speed. 

The loss of the Forcados crude stream – which averaged