I'd settle for even a slight reduction instead of a complete removal, but as it is now it's almost impossible to see whenever I get lit up by fire, frost, etc - kind of ruining certain areas with lots of magic users...
Here's my current mod list in case there would be incompatibility or an option I'm somehow missing(I looked through all my magic mod related ini's)
00 Oblivion.esm01 Jog_X_Mod.esm02 All Natural Base.esm [Version 1.3]03 Francesco's Leveled Creatures-Items Mod.esm [Version 4.5bSI]04 Francesco's Optional New Items Add-On.esm [Version 4.5bSI]05 Cobl Main.esm [Version 1.73]06 Oscuro's_Oblivion_Overhaul.esm [Version 1.34]07 Mart's Monster Mod.esm [Version 3.7b3p3]08 FCOM_Convergence.esm [Version 0.9.9MB3]09 Armamentarium.esm [Version 1.35]0A Kvatch Rebuilt.esm0B CM Partners.esm0C Unofficial Oblivion Patch.esp [Version 3.2.0]++ Oblivion Citadel Door Fix.esp0D DLCShiveringIsles.esp0E Unofficial Shivering Isles Patch.esp [Version 1.4.0]0F Francesco's Optional Chance of Stronger Bosses.esp10 Francesco's Optional Chance of Stronger Enemies.esp11 Francesco's Optional Chance of More Enemies.esp12 Francesco's Optional Leveled Guards.esp13 FCOM_Francescos.esp [Version 0.9.9]14 FCOM_FrancescosItemsAddOn.esp [Version 0.9.9]15 FCOM_FrancescosNamedBosses.esp [Version 0.9.9]16 Fran Armor Add-on.esp17 Fran_Lv30Item_Maltz.esp18 Natural_Habitat_by_Max_Tael.esp19 All Natural.esp [Version 1.3]1A All Natural - SI.esp [Version 1.3]1B All Natural - MMM Patch.esp [Version 1.3]1C Natural_Water_by_Max_Tael.esp1D All Natural - Real Lights.esp [Version 1.3]++ Item interchange - Extraction.esp [Version 0.76]1E Enhanced Economy.esp [Version 5.3]1F C&C - The Blackwood Company.esp20 Display Stats.esp [Version 2.0.1]21 Quest Log Manager.esp [Version 1.3.2]22 Dynamic Map.esp [Version 2.0]23 Enhanced Hotkeys.esp [Version 2.3]24 DLCHorseArmor.esp25 DLCHorseArmor - Unofficial Patch.esp [Version 1.0.5]26 DLCOrrery.esp27 DLCOrrery - Unofficial Patch.esp [Version 1.0.3]28 DLCVileLair.esp29 DLCVileLair - Unofficial Patch.esp [Version 1.0.5]2A DLCMehrunesRazor.esp2B DLCMehrunesRazor - Unofficial Patch.esp [Version 1.0.4]2C DLCSpellTomes.esp2D DLCSpellTomes - Unofficial Patch.esp [Version 1.0.1]2E Thieves Arsenal.esp2F Thieves_Arsenal_Patch_033010.esp30 DLCThievesDen.esp31 DLCThievesDen - Unofficial Patch.esp [Version 1.0.5]32 Cobl Glue.esp [Version 1.73]33 Cobl Si.esp [Version 1.63]34 Bob's Armory Oblivion.esp35 FCOM_BobsArmory.esp [Version 0.9.9]36 Loth's Blunt Weapons for Npcs.esp37 FCOM_LothsBluntWeapons.esp [Version 0.9.9]38 Oblivion WarCry EV.esp [Version 1.09]39 FCOM_WarCry.esp [Version 0.9.9MB3]3A Oscuro's_Oblivion_Overhaul.esp [Version 1.34]3B OMOBS_SI.esp [Version 2.0]3C ArmamentariumLL.esp [Version 1.35]3D ArmamentariumLLVendors.esp [Version 1.35]3E ArmamentariumLLMagic.esp [Version 1.35]3F ArmamentariumArtifacts.esp [Version 1.35]40 ArmamentariumLLArmaVendor.esp [Version 1.35]41 OOO 1.32-Cobl.esp [Version 1.72]42 Mart's Monster Mod - Additional Enemy NPC Vars.esp [Version 3.7b3p3]43 FCOM_Convergence.esp [Version 0.9.9Mb3]44 FCOM_RealSwords.esp [Version 0.9.9]++ FCOM_DurabilityAndDamage.esp [Version 0.9.9]45 FCOM_NoSpiders.esp [Version 0.9.9]46 FCOM_NoReaversInGates.esp [Version 0.9.9]47 FCOM_NoAdventurersInGates.esp [Version 0.9.9]48 Mart's Monster Mod - Extra Wounding.esp [Version 3.7b3p3]49 Mart's Monster Mod - Looting NPCs & Creatures.esp [Version 3.7b3p3]4A Mart's Monster Mod - Dungeons of MMM.esp [Version 3.7b3p3]4B Mart's Monster Mod - Gems & Gem Dust.esp [Version 3.7b3p3]4C Mart's Monster Mod - Hunting & Crafting.esp [Version 3.7b3p3]4D Mart's Monster Mod - Diverse WaterLife.esp [Version 3.7b3p3f]++ FCOM_MoreRandomItems.esp [Version 0.9.9]4E Mart's Monster Mod - Shivering Isles.esp [Version 3.7b3p3]4F ArmamentariumLL4OOO.esp [Version 2.01]50 ArmamentariumLLMagicOOO.esp [Version 1.35]51 C&C - The Blackwood Company - OOO.esp52 OOO-WaterFish.esp [Version 1.34]53 MMM-Cobl.esp [Version 1.73]54 BrotherhoodRenewed.esp [Version 1.1]55 BrotherhoodRenewed - Oblivion XP Patch.esp56 JQ-AssassinQuest.esp57 Kvatch Rebuilt.esp58 Kvatch Rebuilt - Oblivion XP Patch.esp59 Kvatch Rebuilt - OOO Compatibility.esp5A Kvatch Rebuilt - Leveled Guards - FCOM.esp5B Kvatch Rebuilt Weather Patch.esp5C Malevolent.esp5D Servant of the Dawn.esp5E thievery.esp5F thievery - EE patch.esp [Version 4.2]60 VHBloodlines 1.2.esp [Version 1.4]61 DLCBattlehornCastle.esp62 DLCBattlehornCastle - Unofficial Patch.esp [Version 1.0.4]63 Knights.esp64 Knights - Unofficial Patch.esp [Version 1.0.9]65 DLC_MOBS.esp66 TOTF.esp67 RTT.esp68 RTT-Weye Relocation Patch.esp [Version 2.0.1]69 The Lost Spires.esp6A AFK_Weye.esp [Version 2.3.COBL]6B FCOM_Knights.esp [Version 0.9.9Mb3]6C HeartOftheDead.esp [Version 6.5]6D AFK_Weye Arrius_Creek Patch.esp6E bartholm.esp6F Advanced Mark & Recall.esp70 Oblivion XP.esp** Item interchange - Placement for FCOM.esp [Version 0.76]71 Ren_Soya_KD's.esp72 _Ren_BeautyPack_full + Soya's hair.esp++ Mart's Monster Mod - Resized Races.esp [Version 3.7b3p3]73 bgMagicEV.esp [Version 1.7EV]74 bgMagicEVAddEnVar.esp [Version 1.68EV]75 bgMagicEVShader.esp [Version 1.7EV]++ bgMagicLightningbolt.esp76 MidasSpells.esp77 SupremeMagicka.esp [Version 0.90b]78 SM_ShiveringIsles.esp [Version 0.90]79 SM_DLCSpellTome.esp [Version 0.90]7A SM_OOO.esp [Version 0.90]7B SM_MMM.esp [Version 0.90]7C SM_COBL.esp [Version 0.90]7D SM_EnchantStaff.esp [Version 0.90]7E SM_Scrolls.esp [Version 0.90]7F SM_SigilStone.esp [Version 0.90]80 bgMagicEV_Conjuration_for_Supreme_Magicka.esp [Version 1.7.7]81 bgMagicEVStartspells.esp [Version 1.68EV]82 FCOM_Archery.esp [Version 0.9.9]83 ATakesAll.esp84 Encumbrance100.esp++ Cobl Filter Late MERGE ONLY.esp [Version 1.53]85 Cobl Silent Equip Misc.esp [Version 01]** All Natural - Indoor Weather Filter For Mods.esp [Version 1.3]86 Bashed Patch, 0.esp