The
US oil count may have seen a 15-rig increase, according to August 12 data from Baker Hughes, but the news is hardly a boon for buyer and sellers within the
US energy pipe industry, many of whom feel that recovery within the
US domestic and import J55 ERW OCTG casing market is hardly around the corner.
“Things are moving, but they’re moving slowly,” one source notes, adding that futures pricing for unfinished J55 ERW OCTG casing from Korea and Taiwan are still trending in the approximate range of $27.50-$29.50 cwt. ($606-$650/mt or $550-$590/nt), DDP loaded truck in
US Gulf Coast ports. “Things are picking up marginally but it’s far from a flood."
That’s not to say there aren’t some positives.
On Tuesday, multiple news outlets reported that oil prices were at a five-week high, a trend which is likely tied to the upcoming OPEC meeting. It’s further been reported that Saudi Arabia has expressed a strong interest in pushing oil prices higher; questions as to whether OPEC will move forward with freezing output levels have yet to be answered.
On Tuesday, Brent crude futures reached a high of $48.09; some market analysts are predicting that prices will continue to rise, but are likely to level at the $53 per barrel mark.