Activity, pricing and the overall state of the domestic and import energy pipe markets is “still taking a beating,” sources note, adding that the International Energy Agency’s (IEA) prediction that for the current year, global oil consumption will be down by 8.1 million barrels per day, is bleak news for the marketplace.
The reason for the unprecedented dip, the IEA notes, is a marked decline in air and automobile travel, due to the COVID-19 pandemic.
OPEC’s prediction is more bearish. Yesterday, the group revised its July prediction that worldwide oil demand would decline by 7.7 billion barrels per day in 2020, to a dip of 9.06 barrels per day—through the end of December.
The rig count report is “also incredibly depressing,” another source added. Last Friday, Baker Hughes noted that the total US gas and oil rig count was tallied at 247, which is down 73.6% year-over-year. The number of rigs drilling for oil was recorded at 176, whereas the number of rigs targeting natural gas was recorded at 69.
All in all, sources note, there’s not much to report within the energy pipe marketplace. As with previous weeks, stock domestic J55 ERW OCTG casing is still being head in the range of $43.00-$45.00 cwt. ($948-$992/mt or $860-$900/nt), ex-mill. SteelOrbis has also confirmed that spot market prices for stock API-X52 line pipe are still being heard at approximately $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt), ex-mill.
“All pricing is flexible, and it ultimately depends on how badly the seller needs cash flow,” a source concluded.