Oil Prices Fall Amid Global Supply Shifts; Grid-Scale SMR Construction Begins in Canada

Oil prices fell to their lowest levels since a recent war on Tuesday, according to Rigzone, despite historically low U.S. crude inventories. Traders shifted focus to improving Middle East supply flows and growing signs of potential oversupply.

Global supply logistics saw a key development as Iran and Oman agreed to coordinate transits through the Strait of Hormuz, a critical chokepoint for oil shipments. The International Maritime Organization confirmed shippers can transit via Iranian or Omani and U.S.-coordinated waters, part of a broader plan to evacuate stranded vessels, Rigzone reported.

In parallel energy news, construction has begun on the Western world's first grid-scale Small Modular Reactor (SMR) in Ontario, Canada, according to OilPrice.com. A 953-tonne base mat was lowered at the Darlington New Nuclear Project site for a GE Vernova BWRX-300 reactor, the first of four planned units each with a 300-megawatt capacity. The first unit is budgeted at CAD$7.7 billion with an in-service target of 2030.

The project, which received a Licence to Construct in April 2025, is backed by the Ontario government and developer Ontario Power Generation. In Canada, SMRs are considered ideal for deployment to off-grid, remote locations such as mine sites or the oil sands, as well as northern communities reliant on diesel generators.

The development holds potential long-term significance for North American energy-intensive industries. A 2023 study by X-energy Canada confirmed the feasibility of repurposing an existing thermal generation site in Alberta with its SMR technology. That same year, Emissions Reduction Alberta committed $7 million for Calgary-based Cenovus Energy to study the use of SMRs in the oil sands.

Interest in the technology extends beyond Canada. Saskatchewan's SaskPower has expressed interest in building BWRX-300s, and the Tennessee Valley Authority in the United States is also interested, according to OilPrice.com. The U.S. Department of Energy has announced up to $5.5 billion in funding for SMR development.

The current oil price pressure, driven by perceived improved supply stability from the Middle East, contrasts with the long-term, capital-intensive nature of new nuclear projects. For Bakken operators, the immediate market focus remains on global crude flows and their impact on wellhead economics, while the SMR development represents a distant but relevant model for future on-site power generation in remote production areas.