According to the most recent data from Baker Hughes, the number of
US rigs drilling for oil fell by an additional three rigs last week; this comes on the heels of an eight-rig decline seen one week prior. The current number of
US rigs drilling for oil now sits at 351.
Rigs directed toward drilling for natural gas remained stable week-on-week, the natural gas rig count thus has held stable, at 89.
The number of rigs drilling for oil during the same reporting period last year was tallied at 734; the number of
US rigs drilling for gas during the same reporting period last year was 217.
US OCTG inventories continue to trend high, sources note, adding that while in late 2015 the estimated on-the-ground inventory levels were estimated at 12-months, current on-the-ground inventory levels are estimated as being “somewhere between 10 and 11 months, depending on who you’re talking too,” one Midwest-based source notes.
Other sources close to SteelOrbis continue to report that a number of service centers are trying to sell in-stock OCTG casing “for whatever they can get, just because everyone is so desperate for cash flow.”
In terms of current pricing, as with last week futures offers from both Korean and Taiwanese producers of unfinished J55 ERW OCTG casing continue to be 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, while
US domestic spot market pricing for finished J55 ERW OCTG continues to trend at approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill. As in previous weeks, all pricing is flexible.