Global Energy Shifts from Middle East War Pressure Supply Chains, Prices

Global energy markets are adjusting to supply shocks from the ongoing Middle East war, with decisions in Australia and Europe highlighting the interconnected pressures that ultimately influence the price environment for Bakken crude, according to reports from OilPrice.com.

In Australia, Japanese energy firm Inpex is taking action to bolster domestic fuel security by diverting more condensate from its Ichthys LNG project to local refiners. According to OilPrice.com, Inpex announced on Monday, April 13, 2026, that it "is taking decisive action to support Australia's fuel security by making additional Ichthys condensate cargoes available to domestic refiners." A 630,000-barrel cargo is scheduled for late April delivery to an east coast refinery, with a second similar-sized cargo planned in the coming months.

Condensate is a light hydrocarbon critical as a refinery feedstock for producing petrol, diesel, and jet fuel. Australia's government has already intervened in fuel markets, halving the fuel excise for three months to protect consumers from spiking prices, OilPrice.com reported. This move toward energy self-sufficiency in a major Pacific economy could subtly alter global refined product trade flows.

Simultaneously, Europe is grappling with its own supply crisis. Claudio Descalzi, CEO of Italian major Eni, called on Sunday for the European Union to suspend its planned ban on Russian LNG imports, set for January 1, 2027. "I think that it is necessary to suspend the ban," Descalzi said, according to OilPrice.com. He argued the industrial sector is already struggling with high energy costs and the ban should be "suspended or further phased."

The war has roiled markets, with no LNG cargoes passing through the Strait of Hormuz since the conflict began, OilPrice.com noted. This has driven Asian buyers to aggressively compete for spot LNG, outbidding Europe. The EU's initial ban on Russian LNG under spot contracts is set for April 25, 2026.

For Bakken producers, these distant developments create a complex backdrop. The war-induced disruptions are tightening global supply for specific products like LNG and refined fuels, supporting overall hydrocarbon prices. However, regional moves toward supply security—like Australia prioritizing domestic condensate and Europe potentially delaying its Russian LNG ban—could redirect cargoes and alter global crude oil demand patterns.

Any sustained pressure on global diesel and jet fuel supplies, exacerbated by these events, could increase refining margins for products derived from light sweet crudes like Bakken's. Yet, increased competition for shipping and changing trade routes add cost and uncertainty to the export market for North Dakota's oil.