US OCTG market has all eyes on Saudi Arabia

Tuesday, 17 September 2019 22:36:30 (GMT+3)   |   San Diego

Market players within the US domestic and import J55 ERW casing markets say they’re keeping close tabs on the situation in Saudi Arabia. Over the weekend, an attack on a key facility for Saudi Arabian oil production knocked out approximately 50% of the country’s oil production. And while oil prices initially spiked approximately 20% on Sunday evening, oil futures dropped sharply today after Saudi Arabia’s energy minister indicated the country’s crude production could return to normal by the end of the month.

However, analysts predict that if a military escalation erupts, oil prices may climb higher. As such, market players within the US OCTG markets are keeping close tabs on political and military happenings in the Middle East.

In terms of price points, spot market pricing for US domestic and import (Korean) J55 ERW OCTG have continue to hold in the range of $50-$55 cwt. ($1,102-$1,213/mt or $1,000-$1,100/nt), ex-mill and DDP loaded truck in US Gulf Coast ports, respectively.

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