Analysts expect that data this week will show US oil supplies declining for the eighth week in a row; this is good news for the OCTG casing market, as this expectation has helped bolster US oil prices. Earlier today, September futures for West Texas Intermediate crude oil increased to $47.54 per barrel.
Further, according to media reports, sources close to OPEC have indicated that compliance with new agreed production targets continues, falling to 94 percent in July; in June, production was at 98 percent. In November, OPEC will discuss whether to keep, or end current production caps.
In terms of how this is impacting US import OCTG prices, for now, offers from Taiwan and Korea have remained stable.
Prices for imported J55 ERW OCTG from Korea in the US domestic market continue to trend at $42.50-$44.00 cwt. ($937-$970/mt or $850-$880/nt), DDP loaded truck in US Gulf coast ports, before applicable duties from antidumping/countervailing duty case.
Prices for imported J55 ERW OCTG casing from Taiwan in the US domestic market continue to be heard at $0.50 cwt. ($11/mt or $10/nt) below Korean pricing.