Crude Goes Parabolic After Reports of Russian-OPEC Talks to Reduce Oil Supply

Interfax is reporting that Russia is in talks with OPEC about a 5% reduction in supply. Interestingly enough, the great vodka state just announced record oil supply, surpassing Soviet era numbers.

Nevertheless, this is exactly the sort of jargon that will crush the hopes and dreams of crude shorts, infiltrating their small brains, forcing them to cover shorts.

The country’s production of crude and a light oil called condensate is on track to reach 10.89 million barrels a day in January, up 83,000 barrels a day — or the biggest monthly increase since September 2014, according to Bloomberg estimates based on Energy Ministry data.

The potential for a monthly record arises as Russia’s oil industry and state begin talking among themselves about output levels. Company officials and Russia’s Energy Minister spent last night discussing the possibility of coordinating actions with the Organization of Petroleum Exporting Countries due to unfavorable global prices, according to the ministry.

Brent is up 7%, behaving more like a 3-d printer stock than a world commodity.

There is, however, the distant chance nothing arises from these talks.

“The issue of oil-market volatility is being actively discussed,” Kremlin spokesman Dmitry Peskov told reporters Thursday on a conference call. “It is too early to predict the outcome of these talks.”