The US rotary rig count has continued to plunge amidst crashing oil prices. Earlier today, SteelOrbis reported that the week-over-week oil rig count fell by 40, to 624, whereas the number of rigs drilling for gas decreased by four, to 102. The overall rig count is down by 278 rigs, year-over-year.
Oil prices have taken a nosedive in recent weeks; global oil consumption has fallen by 25% since the start of the coronavirus pandemic. Russia and Saudi Arabia, sources note, have refused to cut production, which “is essentially both countries racing to the bottom.”
Today, one expert predicted that West Texas Intermediate crude would fall below $20 per barrel.
And while US domestic API X-52 line pipe prices are “mostly” stable, week-over-week, at $47.50-$50.00 cwt. ($1,047-$1,102/mt or $950-$1,000/nt) ex-mill, sources say prices haven’t moved “because activity is light.”
As for imports, API X-52 pipe offer prices from Mexico are also neutral week-over-week, at $45.50-$47.50 cwt. ($1,003-$1,047/mt or $910-$950/nt) FOB Texas. Downward revisions are likely to come in the upcoming weeks.