Baker Hughes has reported that for the week ending January 17, the US oil rig count was recorded at 673, which reflects a 254 rig drop from the same reporting period last year. It’s also worth noting that the International Energy Agency is reporting that despite the tensions between the U.S. and Iran, the geopolitical situation is unlikely to threaten oil supplies. In fact, they said, non-OPEC oil supplies continue to outpace demand, which is likely to lead to persistent oversupply.
Earlier this week the US Energy Information Administration projected that WTI crude would hover at approximately $59.25 per barrel in 2020, with Brent Crude projected to hover at $62.83 per barrel in 2020. Projections for 2021 put oil barrel prices, for both grades, as being up by approximately $3.00 from 2020 levels.
None of this news is overly exciting for the energy pipe markets, which will need a resurgence in oil barrel prices before drilling projects and thus, demand for API X-52 line pipe, will fully renew. For now, spot market pricing for domestic API X-52 line pipe prices continue to be heard in the range of $49.50-$52.00 cwt. ($1,091-$1,146/mt or $990-$1,040/nt), ex-mill, although deals up to $1.50 cwt. ($33/mt or $30/nt) are said to be available based on tonnage.