OPEC should stay its course towards lower oil inventories and not blink in the face of any supply angst.
From present level with OECD oil inventories close to five years average, OPEC should continue to drain these inventories by at least another 200-300 million barrels. If OPEC at this point ones again starts opening up their oil exports they stand the risk of pushing the market back into contango already by Q3 this year. In doing so they are, totally unnecessary, handing away oil revenue to independent (carry) traders at the expense of the oil producing nations themselves.
Hans Berglund, CIO