According to the most recent data from Baker Hughes, the number of
US rigs drilling for oil fell by an additional eight rigs last week; this comes on the heels of a three-rig decline seen one week prior. The current number of
US rigs drilling for oil now sits at 343.
Rigs directed toward drilling for natural gas fell by an additional rig since our last report a week ago, the natural gas rig count now sits at 88.
The number of rigs drilling for oil during the same reporting period last year was tallied at 703; the number of
US rigs drilling for gas during the same reporting period last year was 225.
US oil prices settled at a new high on Tuesday, according to market reports, although many within the oil, gas, drilling and energy pipe industries have expressed concern about an ongoing supply glut. In the absence of cuts in global oil production, sources note, the
US domestic and import energy pipe markets will continue to be challenged.
In terms of pricing, offers from both Korean and Taiwanese producers of unfinished J55 ERW OCTG casing are unchanged week-on-week and are 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.
As with last week,
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. On-the-ground inventory, however, is being sold at “fire-sale prices,” sources note.