Oil prices on Tuesday rose approximately 1% after Donald Trump signaled trade talks with China were moving “very nicely.” Brent crude futures were recorded at $62.17 per barrel, whereas West Texas Intermediate crude futures were recorded at $56.94 per barrel.
Many within the market believe that demand for energy pipe, including US domestic and import OCTG, will not experience a resurgence until WTI futures climb above $60/barrel.
For now, sub-$60/barrel prices are still taking a toll on the domestic rig count. According to Baker Hughes, for the week ending Nov. 8, the US rotary rig count fell by five to 817, which is 264 rigs (24.4%) fewer than last year. Year-over-year oil exploration in the US is down by 22.8%.
In terms of OCTG pricing, as with last week, “official” pricing continues to be heard in the range of $50-$55 cwt. ($1,102-$1,213/mt or $1,000-$1,100/nt) ex-mill, although spot market deals continue to be available based on tonnage.