OPEC is talking with shale producers
US officials are talking to OPEC about some kind of oil production truce, according to the WSJ.
U.S. oil industry regulators are set to open a dialogue with OPEC on Friday in talks that could help foster a truce between the world's three largest oil producers and potentially resolve a Saudi-Russian price war that has devastated oil markets in recent weeks, according to people familiar with the matter.
There was talk yesterday about the Texas Railroad Commission (which regulates Texas oil & gas) ordering a mandatory curtailment.
US laws block a formal deal but if Texas does it voluntarily and then OPEC follows up with something similar, it would be de-facto the same.
Shale companies are absolutely desperate right now so I think it's realistic. Look at Occidental Petroleum bonds. That's a company whose shares were at $43 a month ago.
More at the WSJ.
Update: Ryan Sitton, the Texas Railroad Commissioner, wrote an op-ed for Bloomberg today basically calling for the US to join with the Russians and Saudis. It's going to happen.
