Global oil prices may have dropped by 2.3 percent earlier today, to $76.98 per barrel, but today’s prices are still far better than they were in July 2017, when the average cost per barrel was trending at under $48.
Market analysts suspect that prices could jump to $100 per barrel, if not more, should the Trump administration be successful in excluding Iranian and Venezuelan oil exports from the global market.
This, combined with drops in US crude inventories alongside robust rig counts, is helping to keep US domestic J55 ERW OCTG casing prices strong.
Current price points are unchanged week-over-week, at $65-$70 cwt. ($1433-$1543/mt or $1300-$1400/nt), ex-mill. Sources close to SteelOrbis have indicated that US domestic pipe mills could increase OCTG production due to favorable profit margins.
At the same time, sources say they do not believe that increased domestic production will offset anticipated Q4 shortages, due to Section 232 import quotas that have been levied against Korean pipe makers.