Strong oil prices and ongoing upticks in rig counts have continued to lend optimism to the
US domestic oil country
tubular goods (OCTG) casing market.
The most recent data from Baker Hughes indicated that as of week ending Apr. 28, the number of rotary rigs drilling for oil increased by nine, to 697; this reflects a year-over-year gain of 365 rigs.
Year-over-year gas exploration is up by 109.9 percent, Baker Hughes continued, adding that the number of rigs directed toward natural gas for week ending Apr. 28 totaled 171. For the same reporting period last year, the number of rigs directed toward natural gas was recorded at 89.
It is also worth noting that the UAE Minister of Energy today told reporters at the Federal National Council session that he believes that during the second part of 2017, demand for oil will increase, which will lead to further upticks in oil barrel pricing.
All of this is positive news for the
US domestic J55 ERW OCTG casing markets. As with last week, prices for finished J55 ERW OCTG casing is still being heard at $50-$52 cwt. ($1102-$1146/mt or $1000-$1040/nt), ex-mill, although some sources continue to report hearing spot price ranges that are slightly higher.