According to the most recent data from Baker Hughes, the US oil rig count for the week ending Aug. 26 trended sideways; the current number of rotary rigs drilling for oil continues to hold at 406. There are, however, still 269 fewer rigs targeting oil than there was this time last year.
And while oil barrel futures for Brent crude and US West Texas Intermediate (WTI) trended as high as $49.58 and $47.47 per barrel, respectively, earlier in the day, some analysts are pointing out that the ongoing global oil supply glut has prevented oil futures from climbing over the $50 per barrel mark.
Others have cited a strong belief that market volatility is “the new normal.” Reuters reported that Jim Ritterbusch, of oil consultancy Ritterbusch & Associates, sees a “high probability of some 80 to 90 percent of a return to $39 WTI.”
Not surprisingly, all of this continues to take its toll on the US import J55 ERW OCTG casing market.
As with last week, futures pricing for unfinished J55 ERW OCTG casing from Korea and Taiwan continues to hold 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, but interest in booking futures remains light.