According to the most recent data from Baker Hughes, the number of US rotary rigs drilling for oil fell by 10 rigs last week, which brings the current number of US rigs drilling for oil to 564; this comes on the heels of a two-rig increase seen once week prior. Year-on-year oil exploration efforts have also decreased: last week, data indicated that year-on-year data put current exploration efforts down by 63.4 percent.
This week, current data shows that year-on-year efforts are down by 64.2 percent.
Sources close to SteelOrbis say that at this point, they’ve “pretty much written off the rest of the year.” The year-end slowdown in order seems to have started months ago, sources said, and they’re not expecting to see much activity between now and the close of 2016. Domestic pricing remains unchanged, with US domestic spot prices for finished J55 ERW OCTG casing continuing to trend at approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill, while published futures offer prices from Korean producers have also remained lateral at $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt), DDP loaded truck US Gulf Coast ports. Trader sources, however, say they’ve received deep-discount offer prices for unfinished Taiwanese J55 ERW OCTG casing, which are trending as much as $5.00 cwt. ($110/mt or $100/nt) below Korean offer prices, but interest in booking futures remains scant.