On Thursday afternoon, news outlets throughout the US began to report that oil prices had fallen to their lowest level in a year. Today, it seemed as if oil prices were set to endure their sharpest weekly fall in more than four years, due to concern over how the spread of the coronavirus could impact global demand.
Data show that Brent crude contract pricing for March fell to $50.75 per barrel. Today’s pricing reflects a 13% drop, week-over-week, and prices reflect a 14-month low for this grade of oil. West Texas Intermediate (WTI) futures fared worse, dropping by approximately 14% week-over-week to approximately $44.66 per barrel.
Many in the US energy pipe sector have expressed concerns about the fate of domestic drilling projects, and in turn, demand for energy pipe should Brent crude fall below $50 per barrel.
For now, however, prices for API X-52 line pipe are steady. US domestic API X-52 line pipe prices are still heard in the range of $47.50-$50.00 cwt. ($1,047-$1,102/mt or $950-$1,000/nt) ex-mill, whereas API X-52 pipe offer prices from Mexico continue to be heard in the range of $45.50-$47.50 cwt. ($1,003-$1,047/mt or $910-$950/nt) FOB Texas.