According to the most recent data from Baker Hughes, the number of
US rotary rigs drilling for oil declined by an additional 6 rigs last week, which brings the current number of
US rigs drilling for oil to 572. This decline comes on the heels of a 16-rig drop seen one week prior. Year-on-year oil exploration in the
US is down by approximately 63.5 percent; there are 996 fewer rigs targeting oil now than there were during the same reporting period last year.
Sources close to SteelOrbis continue to lack optimism when it comes to the
US domestic and import J55 electric resistance weld (ERW) oil country
tubular goods (OCTG) casing markets. Activity continues to be slow and inventories continue to trend high, according to sources, and despite the fact that many distribution centers “are offering J55 ERW OCTG casing so cheap they may as well be giving it away,” buyers are reluctant to take on positions over concern that falling rig counts will lead to additional devaluing of inventory. In terms of prices, those remain steady, but all SteelOrbis sources say a better mark of current price would be “whatever a customer is willing to pay.”
US domestic spot prices for finished J55 ERW OCTG casing are sideways week-on-week, at approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill, while published futures offer prices from Korean producers have also remained lateral at $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt), DDP loaded truck
US Gulf Coast ports.