US oil production is still rocking out at 100-year high levels and many are concerned that “too much oil and not enough demand” will continue to be an Achilles heel for the energy pipe sector. Also on the horizon is the outcome of diplomatic talks with Iran, which could lead to an inflow of Iranian oil into the
US market. Although some point out that the summer season typically brings more drivers to the road, others say those numbers won’t be nearly enough to help stabilize soft oil prices.
“At this point we’re just trying to ride this thing out,” according to one Midwest-based source. Spot prices within the
US domestic finished J55 ERW oil country
tubular goods (OCTG) casing markets have held at soft-sideways since our last report a week ago, still at $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt), ex-Midwest mill, although deals as much as $30/nt below that range are said to be available “for the right buyer with the right-sized order.”
Futures offer prices are also trending at soft-sideways since our last report a week ago, with Taiwanese offer prices for unfinished J55 ERW OCTG casing holding at approximately $43-$44 cwt. ($948-$970/mt or $860-$880/nt), DDP loaded truck in
US Gulf coast ports while Korean futures offers for the same product remain at $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt), DDP loaded truck in
US Gulf coast ports.