Market players within the US import OCTG markets say they’re keeping all eyes on reports that strong global economic growth, which a former chairman of Goldman Sachs Asset Management states is growing at a rate of 4 percent or higher, coupled with recent changes made by Saudi Arabia within their domestic market and with foreign policy, could push oil barrel prices up by 25 percent in the upcoming year.
Some now speculate that oil prices could surge to nearly $80 per barrel. Others have been reluctant to predict $80, but feel that prices are likely to top $70.
At current, oil prices have risen 20 percent since early September; as of earlier today, Brent crude oil was trading at roughly $64 per barrel.
OPEC has confirmed they’ve cut production by approximately 700,000 barrels per day, year-over-year.
In terms of the US oil rig count, those numbers are also positive. Baker Hughes has reported that for the shortened holiday week ending Nov. 22, the number of rotary rigs drilling for oil rose by nine to 747.
OCTG pricing, meanwhile, remains stable, mostly due to year-end factors. Spot market prices for US domestic J55 ERW OCTG casing are still trending at $47.50-$50.00 cwt. ($1047-$1102/mt or $950-$1000/nt), ex-mill, whereas pricing for import OCTG casing from Taiwan in the US domestic is still being heard at $41.00-$42.50 cwt. ($904-$937/mt or $820-$850/nt), DDP loaded truck in US Gulf coast ports.
However, as with last week, deals at the service center level continue to be largely available.