Virtually every physical commodity market (even specialty markets such as industrial hemp and specialty sand for the energy industry) is currently experiencing a significant oversupply scenario.
The team at PanXchange wanted to shed some perspective on how calamitous of a downturn this has been for the US OFS and frac sand markets.
In the Northern White market, FOB Northern White Odessa 40/70m, as well as 100m, 40/70m, and 30/50m mine gate prices fell by 1% each this week.
These rulings continue, despite a federal decision to de-schedule hemp as a controlled substance and forty-seven individual states adopting some sort of hemp production legislation.
The “tried and true” way to assess the performance of an oil well is to compute the total cost per barrel of oil produced once the very last barrel has been recovered.
In the Northern White market, FOB Odessa 40/70m fell by $0.20 per ton and Northern White mine gate prices remained relatively flat this week apart from FOB Wisconsin 30/50m, which was up slightly at +1%.
Hemp benchmarks and analysis session, view here.
Benchmarks and analysis for frac sand available for viewing now.
Below are some recent talking points on both the demand and supply side for crude oil markets to think about as well as a short commentary on supplementary markets such as oilfield services and frac sand supply and logistics markets.
Pricing information is collected via the PanXchange trading platform and surveys of thoroughly vetted market participants.