Faced with an unprecedented imbalance of supply and demand for crude oil, amid COVID-19 and the OPEC+ fallout, traders have found a way to make astounding profits in an otherwise rough global market scenario; by trading offshore crude oil storage on very large crude carriers (VLCCs).
Northern white prices remained relatively stable this week, with 100m and 30/50m Northern White mine gate prices down 1% each this week. FOB Wisconsin 40/70m was down $1 / ton and FOB Odessa Northern White 40/70m was down by $0.60 / ton.
In the Permian, FOB Kermit 100m and FOB Kermit 40/70m each fell by $2.50 / ton this week, suggesting that the slow down in drilling and completion activity is weighing heavily on local sand prices. FOB Odessa Northern White 40/70m fell by $0.50.
The significant macroeconomic factors of the past weeks have, not surprisingly, taken their toll on the US fracking market. In the Permian, the FOB Kermit 40/70m tight supply scenario is over, with prices down by almost 15% this week.
In the Permian, FOB Kermit 40/70m supply remains tight, with prices moderately increasing by 1%. Meanwhile, FOB Kermit 100m prices fell by $1 per ton.
In the Permian, FOB Kermit 40/70m supply remains tight, with prices moderately increasing by 1%. Meanwhile, FOB Kermit 100m prices fell by $2 per ton. Unsurprisingly, we heard anecdotally last week that the market had been quiet (even for Permian sand).
In the Permian, FOB Kermit 100m and FOB Kermit 40/70m prices rose by $1.50 each. We have heard chatter that although there is some hesitancy on quality relative to price of in-basin 40/70m sand, supply is still tight.
Northern White FOB Odessa 40/70m and 40/70m mine gate prices each rose by $1.50/ton this week, suggesting limited increase in consumption in the Permian. 100m and 30/50m mine gate prices remained relatively stable, suggesting continued, limited demand.
In the Northern White market, prices across the board continue to decline, suggesting continued, limited demand relative to local supply in the Permian.
In the Northern White market, 100m and 30/50m prices fell by 1.5%, while 40/70m prices rose by 3%. This suggests that Northern White prices are levelling off after new year’s optimism.