Global oil prices are still trending at just above $52 per barrel; analysts, however, said that increased OPEC production and upticks in OPEC exports could place downward pricing pressure on oil futures in the upcoming weeks.
News outlets indicated that Russia’s largest oil producer increased production by 11.1 percent, year-over-year, in Q2 2017. US production, which is at its highest level in two years, is currently holding at 9.43 million barrels per day.
And while Barclays bank has forecast a price correction in the current quarter, they still estimate that oil prices will rise to around $54 per barrel in Q4. All of this is good news for the US domestic line pipe market.
“We’ve been busy, really busy,” a source said.
In terms of current pricing from Mexico, that has remained stable week-over-week. Current prices for US import API-X52 ERW line pipe from Mexico in the US domestic market are still trending at $45.50-$46.50 cwt. ($1003-$1025/mt or $910-$930/nt), FOB Houston.