Oil barrel prices dipped below the $40-mark on Tuesday, reflecting a 22 percent dip from the June high point. Some market analysts are already talking about oil hitting the $35-mark much sooner than later, which, considering that the summer travel season is coming to an end, seems more plausible than not.
In terms of current
US rig counts, the most recent data from Baker Hughes shows at the number of rotary rigs drilling for oil has increased by an additional three, to 374. The current rig count, however, is still 290 less than what was reported this time last year. Year-on-year oil exploration in the
US is still down by 43.7 percent, but multiple news outlets continue to report that the global oil supply glut is could expand.
In terms of how this translates to the
US domestic and import OCTG markets, it’s a mixed bag. Some trader sources have reported an uptick in activity, not due to true-demand, but because years-old inventory stocks have finally started to dry up. One reported having sold on-the-ground unfinished Taiwanese J55 ERW OCTG casing at $30.00 cwt. ($661/mt or $600/nt), which is up “more than $100/nt from where I could sell it a few months ago,” he said.
As with last week, futures offer prices from Korean and Taiwanese OCTG produces for 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;
US domestic ex-mill is still a relative unknown, buyers say, due to many within the market “still brokering on the ground stock from one another instead of booking orders at the mill.”