News reports today have indicated that market analysts believe that oil prices could rally as high as $80 per barrel during 2018. Low prices have created demand, sources say, adding that demand for oil may help lead the charge.
Current speculation puts WTI oil as high as $67-$70 per barrel during the current year, but others believe that if OPEC keeps up the current production cuts, that WTI prices could climb as high as $80 per barrel.
Also of note is declining domestic oil inventory levels.
Current data from the US Energy Information Administration shows that US crude supply levels have fallen for eight consecutive weeks; the total drop during that time is estimated to be in the range of 39 million barrels.
And while demand is certainly driving the market, some are expressing concern that the Trump Administration’s announcement that the US is permitted to open additional offshore oil drilling projects could lead to negative pricing pressure—which could have negative ramifications for the domestic and import OCTG markets.
At current, import inquiries continue to remain strong, with pricing for US import J55 ERW OCTG casing from Taiwan in the US domestic market still trending at $41.00-$42.50 cwt. ($904-$937/mt or $820-$850/nt), DDP loaded truck in US Gulf coast ports