Global Oil Well Tube Market Shows Recovery Sign

Demand for oil well tubes seems to be recovering in Southeast Asia, Middle East and Latin America. At the same time, the decrease of US rig count (the number of operating rigs in USA) is likely to stop. In some areas, rig count currently turned to increase. Oil well tube market shows a sign to rebound.

USA accounts for 50% of the global oil well tube market. However, US market has plunged along economy deterioration since autumn 2008. US dealers hold much excess tube inventory due to the sharp demand decline. It seems difficult the market recovers in a short term.

Meanwhile, US rig count announced on 29 May was 899, which was a half of the peak but decreased by only 1 from the previous announcement. In some areas of USA, rig count seemed to turn increase. The figure appears to stop decreasing.

In other countries, on the other hand, demand for oil well tubes maintains stable. Especially in Southeast Asia, Middle East and Latin America, the demand is gradually increasing. Japanese trader sources expect the global oil well tube market may recover early if crude oil price surges despite of recovery delay in USA.