Home>News>Industry news>Will the OCTG coupling price be affected by the fluctuation of oil price?[Dec 30th,2022]
Will the OCTG coupling price be affected by the fluctuation of oil price?[Dec 30th,2022]

As the price of oil continues to rise, the price of OCTG couplings is also rising. However, will the price of OCTG couplings be affected by fluctuations in oil prices? The impact of oil price fluctuations on coupling prices: The impact of oil price fluctuations on coupling prices is mainly manifested in two aspects. One is the direct impact, that is, as the price of crude oil rises, the price of couplings will also rise accordingly; the other is the indirect impact, that is, by affecting the price of pipelines, the rise in crude oil prices leads to an indirect increase in the price of couplings. However, due to the large fluctuations in oil prices in the market, the short-term impact on coupling prices is small, and in the long run, oil prices have a greater impact on coupling prices. According to statistics, in recent years, global oil prices have risen by 100% to 200%, while coupling prices have only increased by 10% to 20%. This shows that in the long run, fluctuations in oil prices have a greater impact on coupling prices. To sum up, the impact of oil price fluctuations on coupling prices is mainly reflected in the long-term price increase. 

Companies need to take into account fluctuations in oil prices when choosing suppliers. Companies need to consider how to balance the volatility of the oil price with the coupling price. When the oil price fluctuates greatly, enterprises may selectively use different suppliers in order to balance the oil price fluctuation with the collar price. The reason for this is that if the price of oil goes up, the price of the connection will go up, but using a different supplier can help curb this price increase to some extent. At the same time, it can also help enterprises to reduce the sensitivity to oil price fluctuations to some extent.

For now, the impact of oil price fluctuations on coupling prices is not significant. Enterprises should choose whether to use oil from different suppliers according to their own conditions to ensure the rationality of production costs. At present, OCTG coupling companies are not sensitive to oil price fluctuations, so it is still unknown whether the price of OCTG couplings will be affected by oil price fluctuations. However, with the reduction of oil reserves and the development of the economy, the price of OCTG couplings will rise accordingly.