According to the most recent data from Baker Hughes, the number of
US rotary rigs drilling for oil increased by 2 rigs last week, which brings the current number of
US rigs drilling for oil to 574. Year-on-year oil exploration in the
US, however, continues to be down by approximately 63.6 percent, and there are 1,004 fewer rigs targeting oil now than there were during the same reporting period last year.
Sources close to SteelOrbis say the minor uptick is little cause for celebration, especially due to ongoing price volatility within global oil markets. “Everything is slow,” said one Midwest-based source. “Most people aren’t even looking at booking futures right now because on-the-ground import is being sold at well below replacement cost. As with last week.
US domestic spot prices for finished J55 ERW OCTG casing are lateral, at approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill, while published futures offer prices from Korean producers have also remained lateral at $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt), DDP loaded truck
US Gulf Coast ports, although trader sources say they believe that they could “do up to $100/nt better if we tried.”