According to the most recent data from Baker Hughes, the number of
US rotary rigs drilling for oil increased by 14 last week, which brings the current number of active oil rigs to 371. This marks the fourth straight week that the
US rig count has inched up. Although the once-again uptick in rig count is promising, year-on-year oil exploration in the
US is still down by 43.7 percent.
Market players within the
US domestic and import J55 ERW OCTG casing markets, however, remain concerned about oil barrel prices. Yesterday,
US crude oil prices slipped below $43.00, a three-month low, before inching back up to close at $43.13 per barrel.
Over supply and massive oil and gas inventories, continue to be worrisome. On Sunday, Morgan Stanley analysts published a report highlighting “worrisome trends” for both oil and gas demand, adding that “crude oil demand is trending below refined product demand for the first time in three years.”
Other news sources have reported that the forecast for oil demand is bleak, noting that sub-$40-per-barrel oil isn’t all that far-fetched.
In terms of what this means for the
US domestic and import J55 ERW OCTG markets, pricing and order activity have remained “mostly stagnant,” although some are reporting minor upticks in customer inquiries.
Futures offer prices from Korean and Taiwanese OCTG produces for unfinished J55 ERW OCTG casing 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, reflecting no change in the past week. As in previous weeks,
US domestic ex-mill pricing continues to be in question, since buyers and sellers continue to broker on-the-ground material from one another as opposed to placing orders with pipe mills.