According to the most recent data from Baker Hughes, the number of
US rigs drilling for oil fell by an additional 10 rigs last week; this comes on the heels of a 15-rig decline seen one week prior. The current number of
US rigs drilling for oil now sits at 362.
Rigs directed toward drilling for natural gas increased by an additional four rigs since our last report a week ago, which brings the natural gas rig count to 88.
Year-over-year oil exploration in the U.S. is down 56.2 percent. Gas exploration is down 60.4 percent. The weekly average of crude oil spot prices is 20.1 percent lower than last year and natural gas spot prices are 30.2 percent lower than last year.
Sources close to SteelOrbis continue to report that falling rig counts and decreased order and drilling activity is still having a detrimental impact on the
US domestic and import J55 ERW OCTG casing markets. Pricing is facing downward pressure, sources note, adding that futures offers from Korean and Taiwanese producers of unfinished J55 ERW OCTG casing are still trending 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 is trending mostly firm, although buyers continue to report weak interest in booking offshore.
Prices within the
US domestic spot market transaction range for finished J55 ERW OCTG continues to hold at approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill, although Midwest-based sources have reported that some sellers are continuing to quote offers in ranges that are below replacement cost “just to gain some cash flow.”