Although data from Baker Hughes indicates that last week’s oil rig count firmed by 3, to 676, there are still 16 fewer rigs targeting oil than there were during the same period last year.
Soft rig counts will likely continue, at least in the short term, due to predictions that oil prices are expected to remain depressed, despite OPEC’s predictions that demand for crude oil will increase by 1.22 million barrels today during the current calendar year.
Tensions between the US and Tehran, along with global concerns relating to the Wuhan coronavirus could negatively impact demand in China, are among the factors that are placing downward pressure on oil prices.
For now, price points for US domestic J55 ERW casing have remained in the range of $49-$54 cwt. ($1,080-$1,191/mt or $980-$1,080/nt), ex-mill, which reflect no change in the past week.
Meanwhile, import offers from Korea are expected to resume in the upcoming days.