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Reuters Business @ReutersBiz 30m30 minutes ago

BREAKING: Russia's Transneft says Russia and OPEC will discuss possible output cuts -TASS

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Get on with it so people can stop worrying about getting laid off please.

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Up to $32.5 on the news

also chatter that Yellen is going to do something for the banks. that's how bad the economy is.

What does that mean for the US?

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also chatter that Yellen is going to do something for the banks. that's how bad the economy is.

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That sounds brilliant. Raise interest rates and then bail out the banks because the economy sucks.

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also chatter that Yellen is going to do something for the banks. that's how bad the economy is.

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where, on zerohedge?

The credit expansion over the past few decades has been impressive. Eventually we'll have to deal with the consequences.

Oil off and running again today, up over 4%.

Not sure whether to be excited that we are approaching $35 or depressed that oil almost up to $35 is exciting.

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Oil off and running again today, up over 4%.

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Temporary bump to let the volatility traders cash in. If it really rises into the 40's range, expect the cash desperate to open up more production.

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Temporary bump to let the volatility traders cash in. If it really rises into the 40's range, expect the cash desperate to open up more production.

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Party pooper...

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Temporary bump to let the volatility traders cash in. If it really rises into the 40's range, expect the cash desperate to open up more production.

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No one in the US can just "open up" more production. Cash strapped companies have already dropped their rigs, and drilling is the only way they could boost production or even maintain current production levels.

Aren't there 800+ DUC wells in the Bakken alone? Those could be brought on fairly quickly. The go forward economics will look good even at $40 oil.

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Aren't there 800+ DUC wells in the Bakken alone? Those could be brought on fairly quickly. The go forward economics will look good even at $40 oil.

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Probably so, but people aren't going to pick up 800+ rigs and knock those all out at once. Look at the rig count vs. price chart since the downturn started. When oil recovered to $60+/bbl the rig count slowly and modestly increased. There wasn't a big rush right away to put rigs back to work, certainly not enough to actually increase domestic production. We're at the point where people are just trying to stabilize production and flatten declines. Cash strapped companies are going to use their capital to de-leverage, not drill/complete uneconomic wells.

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Aren't there 800+ DUC wells in the Bakken alone? Those could be brought on fairly quickly. The go forward economics will look good even at $40 oil.

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yes, and i wouldn't expect companies to pick up frac crews, but to use these to fill holes in the capital/completion schedule

A DUC doesn't require a rig, just a frac fleet. Your point stands though. It would take months to get 800 wells completed.

Just heard on the local news in Dallas that Saudi is considering cutting production? Any truth to this?

Ahh true, I work exclusively offshore so I think in terms off rigs for everything. But yeah my point still stands. You aren't going to see people rushing out to complete wells until prices are MUCH higher. When they do, they'll find rig fleets and frac fleets that are a fraction of their former selves due to capital constraints on the service side preventing maintenance.

It's all speculation. Russia and OPEC are supposedly supposed to meet to discuss production. Operative part of that conversation being "OPEC." I've said it before and I'll stick with my assumption that any cuts coming out of OPEC will not come at the Saudis expense.

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Just heard on the local news in Dallas that Saudi is considering cutting production? Any truth to this?

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Russia claims that Saudi proposed 5% cuts across the board (including non OPEC countries that are willing to negotiate - like Russia)

Here's a frac spread count for the US.

Source: http://www.pvmic.com/frac-spread-count/

A 5% opec + Russia cut would send prices through the roof.

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A 5% opec + Russia cut would send prices through the roof.

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I'm sure the goal will to be to burn through inventories then try to balance out the market.

looks like both Shell and BG shareholders have approved the merger

when does it officially become 'Official'?

OPEC announces no plan for meeting with Russia

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OPEC announces no plan for meeting with Russia

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Market is possibly acting accordingly then. $33.60 something last I'd saw. I know it was into the $34s earlier for a little while.

I don't buy that the Saudis will agree to production cuts. The most I can see them doing is agreeing to hold production at current levels and not increase as long as everyone else does the same thing, or perhaps agree to not increase their production to offset any production cuts others agree to.

I think it is still just rhetoric, but all of the jawboning the past week from the OPEC weak sisters and Russia may help at least provide a $30+ floor on prices in the short-term.

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when does it officially become 'Official'?

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heck if i know. i think this was the last hurdle, so i think we'll finally start hearing some news now about what happens next.

Well said. What a long strange trip this roller coaster has taken us on. $34 feels like Christmas at this point.