The
US oil rig count may have added an additional 6 rigs last week, which comes on the heels of 10-rig increase seen one week prior, but the current oil rig count, which Baker Hughes has recorded at 337, is still 281 fewer that the number of rigs that were targeting oil this time last year.
The most recent numbers indicate that year-on-year oil exploration in the
US is down by 44 percent.
Oil prices have been fluctuating in the upper $40s/ lower $50s for weeks now, but today, oil barrel prices fell slightly. It’s also been reported that while
US oil stockpiles fell once again last week, marking the ninth straight week of declines, it’s believed that oil barrel prices could slip to the low $40s after the summer travel season comes to a close.
All of this continues to hinder the
US domestic and import OCTG casing markets.
“Things are just slow, they’re still slow. Oil has been hurting for going on two years now and that’s certainly not helping anything,” one source said. “Things have picked up nominally but it’s definitely not anything worth writing home about.”
Futures offer prices from Korean and Taiwanese OCTG producers continue to hold mostly lateral, with pricing for unfinished J55 ERW OCTG casing still being heard 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.
US domestic Ex-mill pricing continues to be relatively unknown, sources note, adding that service and distribution center sources continue to broker J55 ERW OCTG casing from each other, as opposed to placing orders with the mills.