According to the most recent data from Baker Hughes, the number of US rotary rigs drilling for oil fell by an additional 28 rigs last week, which comes on the heels of a 31 rig-decline that was seen one week prior. The current number of US rigs drilling for oil now sits at 439. Rigs directed toward drilling for natural gas are also down an additional 2 rigs since our last report a week ago, which brings the natural gas rig count to 102. Current year-on-year oil exploration efforts continue to be down 58.4 percent; year-on-year gas exploration is down by 66 percent. The weekly average of crude oil spot prices is 45.6 percent lower than last year and natural gas spot prices are 21.1 percent lower than last year.
Trader sources continue to report that lagging activity within both the US domestic and import J55 ERW OCTG casing markets has forced them to begin trading in longs and flats products.
As in previous reports, global oil overproduction compounded with soft oil prices continues to impact pricing within both the US domestic and import J55 ERW OCTG casing markets.
The US domestic spot market price range for finished J55 ERW OCTG casing may still be trending in the approximate range of $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill, but sources close to SteelOrbis say that all pricing is flexible and that many sellers will “sell for whatever price they can get.” In terms of futures prices from Taiwanese and Korean producers for unfinished J55 ERW OCTG casing, that is also steady week-on-week at $27.50-$29.50 cwt. ($606-$650/mt or $550-$590/nt), DDP loaded truck in US Gulf Coast ports, but deals below this range are readily available, sources say.