Page 15 - ITAtube Journal 1 2026

Market information
Figure 12: Oil price WTI development 1 year up to March 2026 (US$/Bbl.)
Source: OilPrice.com
Source: Rystad Energy
pipes. Consumption of OCTG correlates
strongly with oil prices (see Figure 12). The
oil price is signifi cantly aff ected by the con-
fl ict between the US/Israel and Iran. Since
28th of February, the oil price has jumped
from around 60 USD/Bbl to 100 USD/Bbl
(+67%).
Fears about the oil supply are driving the
price up. These nervous reactions refl ect
uncertainty about the duration of the con-
fl ict and the extent to which exploration,
processing and logistical infrastructure
may be aff ected by bombing. Many indus-
tries that depend on moderate oil prices
are suff ering. Everyone hopes that Middle
Eastern oil exploration sites and refi neries
will not be aff ected, and that the Strait of
Hormuz will soon reopen.
The US Energy Information Administration
(EIA) reports a record high of 13.7 million
barrels per day (Bbl/d) for March 2026,
and forecasts 13.3 million Bbl/d for 2027.
US oil and oil product exports reached a
further record high of 11 million barrels
per day in March 2026.
According to Oilprice.com, the number of
US oil rigs has remained relatively stable,
increasing from 412 in December 2025 to
414 on 20th of March 2026. The number of
gas rigs increased from 125 to 131 during
the same period, driven mainly by shale
gas. We have noted a signifi cant increase
in output per rig, which is due to improved
rig productivity. US policy continues to pri-
oritize fossil fuels and nuclear energy, with
reduced focus on wind and solar power.
It seems that exploration companies have
recently focused more on profi ts and
dividends than on expansion. The poten-
tial eff ects of a prolonged Iranian war and
further damage to oil and gas infrastruc-
ture must be closely monitored.
Meanwhile, the expected global oil
demand for 2026 is rising moderately to
105 million bpd, driven mainly by Asia and
emerging markets.
Demand for tubular products will remain
strong as concerns about energy security
persist.
The increased productivity of oil and gas
rigs, as well as horizontal drilling technol-
ogy for shale gas, requires many tubular
products and creates an increased tech-
nological demand for the tubes and joints
used for expolration. Corrosion and wear
continue to aff ect the performance of
OCTG, particularly in H₂S/CO₂-rich environ-
ments. So-called sour gas alloys are widely
used. There is also rising demand for
ITAtube Journal April 2026
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