Rock Products Logo
 

This Week’s Market Buzz

• U.S. crude oil fell below $50 a barrel for the first time in more than a year. Oil's recent slide has shaved more than a third off its price. Crude fell more than 1 percent to as low as $49.41 a barrel. The last time oil closed below $50 was in Oct. 4, 2017. Concerns about oversupply have sent oil prices into a virtual freefall. Crude hit a four-year high above $76 a barrel less than two months ago.

Read more: This Week’s Market Buzz

This Week’s Market Buzz

  • Crude oil prices crashed on Nov. 14, losing 7 percent in just one day, which was the biggest daily loss in three years. At press time, WTI is $56.67 per barrel, and Brent $66.8, despite pressure by a vicious combination of demand outlook, oversupply concerns and other factors such as President Trump’s call on OPEC to keep production at current levels.

Read more: This Week’s Market Buzz

This Week’s Market Buzz

• WildHorse Resource Development reported that it is ahead of schedule in constructing an in-field sand mine in its Eagle Ford/Austin Chalk play area. Originally expected to come on line in the first quarter of next year, first sand loadings now are expected as soon as Nov. 1, with full operational capacity by the end of November. With in-basin sand supplies, the company said it anticipates saving $400,000 to $600,000 per well and improving Eagle Ford internal rates of return by up to 16 percent.

Read more: This Week’s Market Buzz

This Week’s Market Buzz

• Hi-Crush Partners reported third quarter 2018 results. Revenues for the third quarter of 2018 totaled $214 million on sales of 2,775,360 tons of frac sand. This compares to $248.5 million of revenues on sales of 3,037,504 tons of frac sand in the second quarter of 2018. "The third quarter experienced a rapid change in market conditions in the frac sand sector," noted Robert E. Rasmus, chairman and chief executive officer of Hi-Crush. “This change, attributable to declines in well completion activity and therefore demand for frac sand, impacted the market for Northern White volumes and pricing, which we expect to continue in the fourth quarter. The accelerated pace of slowdown in well completion activity, combined with supply additions and build-up of inventories in-basin, resulted in lower pricing for Northern White sand across all basins.”

Read more: This Week’s Market Buzz

This Week’s Market Buzz

• Several speakers and attendees at a recent frac sand conference held in Denver discussed recent mergers in the frac sand industry and predicted the still-overbuilt industry was ripe for a consolidation.

Read more: This Week’s Market Buzz