Last Friday, Baker Hughes reported that the US rotary rig count had fallen by 3 rigs to a total of 244 rigs. Last week’s number reflects a nearly 74% drop, year-over-year.
Also if note, is an August 11 short-term energy outlook from the U.S. Energy Information Administration which the EIA notes, “remains subject to heightened levels of uncertainty because mitigation and reopening efforts related to the 2019 novel coronavirus disease (COVID-19) continue to evolve.”
According to their press release, “The EIA has lowered U.S. crude oil production estimates for 2020 by 370,000 b/d from the previous short-term energy outlook. EIA expects crude production to average 11.3 million b/d in 2020 and 11.1 million b/d in 2021, down from 12.2 million b/d in 2019. Recently released EIA data show that average monthly U.S. oil production for May was 1.2 million b/d lower than the July forecast, indicating more extensive production curtailments than previously estimated.”
Suffice to say, the domestic energy pipe markets continue to struggle.
As with last week, spot market prices for stock API-X52 line pipe continue to be heard at approximately $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt), ex-mill, whereas prices for Mexican material continue to trend in the range of $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt), FOB Texas.
In 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, whereas Korean material continues to be offered at approximately $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt), DDP loaded truck in US Gulf ports.
Business, souces note, is described as being "terrible."