Sunday, May 31, 2026

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Oil Prices

Oil Prices Drop Over 1.7% as Geopolitical Tensions Ease

Front-month crude oil futures declined sharply in early Monday trading, with both major benchmarks shedding over 1.7%. West Texas Intermediate (WTI) crude for July delivery was trading at $87.36 per barrel, down $1.54. Brent crude traded at $91.12, a drop of $1.58. The price drop is primarily attributed to renewed diplomatic efforts to de-escalate tensions in the Middle East. According to a Rigzone report from May 28, traders are balancing optimism over potential Iran truce talks against supportive fundamentals like falling U.S. crude inventories. The prospect of a reduction in geopolitical risk premium is applying downward pressure on prices. For Bakken producers, the realized price for crude at the wellhead is also under pressure from a narrowing differential. The Bakken discount to WTI at the Clearbrook, Minnesota, hub was quoted at $-3.42 per barrel. A narrower differential means Bakken crude is priced more closely to the WTI benchmark, which can...

☀️Morning Wire·May 31

Rig Report

North Dakota Rig Count Holds at 30, Up 7 from May Start

The number of active drilling rigs in North Dakota's oil fields held steady at 30 on Sunday, May 31, according to live data from Bakken Wire. There were no changes from the previous day, with no new rigs added, removed, or relocated. The current count represents a significant increase from levels seen earlier this spring. The state's active rig fleet is up four rigs from one week ago, when 26 rigs were active, and is up seven rigs from the start of May, which saw 23 rigs running. The stability in North Dakota aligns with a broader, sustained increase in U.S. drilling activity. According to a Baker Hughes survey reported by Bing News on May 29, the total number of oil and gas rigs actively drilling across the United States increased by four to 562 last week. This marked the sixth consecutive weekly gain for oil rigs specifically and the...

☀️Morning Wire·May 31

Daily Activity

DMR Daily Activity Report Shows No New Filings for Saturday

The North Dakota Department of Mineral Resources (DMR) daily activity report for Saturday, May 30, 2026, contained no new filings, according to the agency's data. The DMR's daily report typically lists new drilling permits issued, wells spudded (drilling commenced), wells completed, and wells plugged. The absence of new filings on a weekend is a normal occurrence, as regulatory and company offices often have reduced filing activity. No-activity reports are common on Saturdays, Sundays, and state or federal holidays. The next update from the DMR, which provides a key snapshot of operational planning and work in the Bakken formation and across North Dakota, is expected with Monday's report.

☀️Morning Wire·May 31

Global Markets

China's Oil Import Pause Pressures Prices Amid Global Supply Crisis

China's crude oil imports have plunged to their lowest level in nearly a decade, creating a significant bearish pressure on global markets that directly impacts Bakken crude pricing. According to OilPrice.com, citing data from Kpler, China's imports for May 2026 are estimated at just 6.78 million barrels per day, a sharp drop from April's 8.5 million bpd and far below the 2025 average of 10.66 million bpd. The report states this is due to Chinese refiners reducing overseas purchases and relying on strategic inventories amid high prices caused by the ongoing U.S.-Israel-Iran war. This buying pause from the world's top oil importer is a key factor in the "overwhelming bearish sentiment" gripping oil markets, according to the source. For Bakken producers, this translates to suppressed near-term crude prices despite a global supply crisis that has seen 20% of global LNG supply stripped from the market since March. However, analysts warn...

☀️Morning Wire·May 31

Global Markets

Global Oil Pressure Eases as Cuba Crisis, Total Stake, and Price Dip Emerge

Oil prices settled at a six-week low on Friday as traders bet on the potential reopening of the critical Strait of Hormuz amid ongoing truce negotiations, according to Rigzone. The price decline reflects shifting geopolitical risks that can influence the global market backdrop for Bakken crude. The energy crisis in Cuba has deepened significantly following U.S. intervention in Venezuela in February, OilPrice.com reported. Cuba, which requires about 100,000 barrels of oil per day, previously relied on Venezuela for fuel imports. That flow stopped after the U.S. action, and subsequent U.S. threats of tariffs against third-party suppliers like Mexico have exacerbated severe blackouts and fuel shortages on the island. In response to the crisis, the Cuban government is loosening state control to spur private investment in energy diversification. New regulations provide tax exemptions for businesses importing solar panels. A more significant shift came in March with a new law allowing private...

☀️Morning Wire·May 31

Operator News

LNG, Regulatory Scrutiny Headline Friday's Energy Operator News

Major engineering and construction contracts for liquefied natural gas export facilities on the Gulf Coast were announced Friday, while a proposed offshore California project drew scrutiny from lawmakers. The developments highlight contrasting regulatory environments for U.S. energy infrastructure. CB&I has won a contract to build five large LNG storage tanks for the Commonwealth LNG project in Cameron Parish, Louisiana, according to Rigzone. Each tank will have a capacity of 1.77 million cubic feet. Separately, Cheniere Partners awarded Bechtel a contract for the expansion of the Sabine Pass LNG facility in Louisiana, Rigzone reported. The report states Cheniere also issued Bechtel a 'limited notice to proceed' to begin early engineering and procurement work. For Bakken operators, the continued investment in Gulf Coast LNG infrastructure is a positive long-term signal for natural gas demand. North Dakota, a major gas producer alongside its crude oil output, relies on access to growing markets to...

☀️Morning Wire·May 31

Pipeline & Infrastructure

Global LNG, Geopolitical Developments Could Influence Bakken Energy Markets

Two international developments reported this week could have downstream effects on global energy markets relevant to Bakken producers, according to news summaries from Rigzone. In South Africa, the Transnet National Ports Authority has executed a 25-year terminal agreement with Ukwanda LNG for a regasification project at the Port of Ngqura, Rigzone reported on May 29. The project would establish a new liquefied natural gas (LNG) import facility. For Bakken operators, growth in global LNG import infrastructure can influence long-term demand dynamics for natural gas, a key associated product from the region's oil wells. Separately, the United States and Iran have tentatively agreed to extend a ceasefire by 60 days and launch further talks on Tehran's nuclear program, a person with knowledge of the matter told Rigzone on the same date. While details are tentative, stability in the Persian Gulf region can reduce volatility in global crude oil prices. The Bakken...

☀️Morning Wire·May 31

Production Data

Bakken Rig Count Holds at 30 as Oil Prices Retreat from Recent Highs

North Dakota's active oil and gas rig count held at 30 for the reporting period ending May 31, 2026, providing a stable signal for near-term drilling activity even as crude oil prices pulled back. The figure represents the core of the state's drilling fleet and is a primary indicator of future production levels in the Bakken formation. The price environment showed notable weekly declines. West Texas Intermediate (WTI) crude settled at $87.36 per barrel, down $1.54 or 1.73%. The international Brent benchmark followed a similar trend, closing at $91.12, a drop of $1.58 or 1.7%. The Bakken crude differential, a key metric for local operator revenue, was priced at a discount of $3.42 per barrel versus WTI. Natural gas prices were recorded at $3.29 per MMBtu. Historically, the rig count is a leading indicator for production, with a lag of several months between drilling activity and new wells contributing to...

☀️Morning Wire·May 31

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Retreat on Monday Amid OPEC+ Uncertainty, Bakken Differential Widens

Oil prices declined in midday trading on Monday, May 31, 2026, with both major benchmarks shedding over 1.7%. West Texas Intermediate (WTI) crude traded at $87.36 per barrel, down $1.54 for the session. Brent crude fell $1.58 to $91.12 per barrel. The price slide comes ahead of a critical OPEC+ meeting scheduled for this coming weekend. According to Reuters, traders are focused on whether the producer group will extend its current output cuts into the second half of the year. The potential for a policy shift is creating market uncertainty and downward pressure on prices. For Bakken operators, the local price benchmark also weakened. The Bakken differential—the discount at which Bakken crude trades versus WTI—widened to negative $3.42 per barrel. This means Bakken crude is priced at approximately $83.94 per barrel after accounting for the differential. The widening discount can impact netbacks for North Dakota producers, especially those with higher...

🔆Midday Wire·May 31

Global Markets

China's Oil Import Pause Could End, Impacting Bakken Crude Markets

A sharp reduction in China's crude oil imports, driven by high prices from the Middle East conflict, is expected to be temporary, according to analysis from Kpler reported by OilPrice.com. This eventual rebound could tighten global markets, impacting the price environment for Bakken crude. China's crude imports are estimated at 6.78 million barrels per day this month, which would be the lowest monthly figure in nearly ten years and a sharp drop from April’s 8.5 million barrels daily, Kpler senior crude oil analyst Muyu Xu reported. For context, China’s average daily oil import rate last year was 10.66 million barrels. The current low import level suggests Chinese refiners are drawing on strategic inventories to maintain refinery runs averaging 13.5 million barrels daily, according to Kpler. Despite the import pause, demand for oil products in China remains resilient. OilPrice.com reports that China's government is unlikely to let its oil in storage—estimated...

🔆Midday Wire·May 31

Global Markets

Global Energy Roundup: Solar Race Accelerates, U.S. Rig Count Climbs

The race to build the world's largest solar farms is accelerating, a trend underscored by mega-projects in China and the United States, according to a report from OilPrice.com. This development comes as U.S. oil and gas drilling activity continues to rise, with the national rig count climbing for a sixth consecutive week. Driven by falling panel prices and government pushes to diversify energy mixes, developers are launching giga-scale solar parks requiring vast land, skilled labor, and major transmission investments. In China, the 16.9-gigawatt Talatan Solar Park in Qinghai covers 162 square miles of alpine desert, with power costs estimated at 40 percent less than coal-fired power. China is further expanding this park, integrating it with wind and hydroelectric dams. In the United States, Golden State Clean Energy is developing a 21-gigawatt solar farm across 200 square miles in California, a project intended to help justify new multibillion-dollar power lines to...

🔆Midday Wire·May 31

Operator News

Global Energy News Roundup: Investment, Prices, and Policy

Czech billionaire Daniel Kretinsky sees potential to increase his stake in French energy major TotalEnergies, according to Rigzone. Kretinsky, whose current holding is under 5 percent, stated that further diversification could lead to continuing to increase the stake. For Bakken operators, major international investment flows into integrated oil companies can signal broader market confidence in the long-term value of hydrocarbon assets, including those in shale plays. Global oil prices settled at a six-week low on Friday, May 29, Rigzone reported. Traders bet on the potential reopening of the Strait of Hormuz, a critical chokepoint for global oil shipments, as truce negotiations continue. Lower benchmark prices directly impact the realized price for Bakken crude, putting pressure on operator margins and potentially influencing near-term drilling and completion decisions in the Williston Basin. In UK politics, Reform UK Deputy Leader Richard Tice told energy giants that his party would prioritize North Sea drilling...

🔆Midday Wire·May 31

Pipeline & Infrastructure

LNG Construction Advances as California Pipeline Politics Heat Up

Engineering and construction activity is advancing at two major Gulf Coast LNG export projects, according to separate reports from Rigzone. Meanwhile, a campaign to restart offshore California oil flows is drawing political fire, highlighting continued pipeline and infrastructure challenges. CB&I has won a contract to build five large LNG storage tanks for the Commonwealth LNG project in Cameron Parish, Louisiana, Rigzone reported on May 29. Each tank will have a capacity of 1.77 million cubic feet. In a separate development also reported by Rigzone on May 29, Cheniere Partners has given Bechtel a 'limited notice to proceed' for early engineering and procurement activities related to the expansion of the Sabine Pass LNG facility. These Gulf Coast infrastructure investments contrast with ongoing political and legal battles over pipelines elsewhere. According to a third Rigzone report from May 29, a group of Democratic lawmakers is probing Sable Offshore Corp.'s campaign to restart...

🔆Midday Wire·May 31

Regulatory

Global Regulatory Moves on LNG, Arctic Drilling, Iran Truce Impact Energy Landscape

International regulatory and diplomatic developments are shaping the global energy environment, with potential indirect implications for Bakken shale operators and crude oil markets. In South Africa, the Transnet National Ports Authority has executed a 25-year terminal agreement with Ukwanda LNG for a regasification project at the Port of Ngqura, according to Rigzone. The long-term investment in liquefied natural gas (LNG) import infrastructure signals growing global demand for natural gas, which can influence broader energy commodity prices and trade flows that US producers, including those in the Bakken, compete within. Separately, Norway is campaigning for the European Union to withdraw a moratorium on new oil and gas drilling in the Arctic, Rigzone reported. Norway argues that nearly two-thirds of its petroleum resources lie in the Arctic region. The pushback against EU drilling restrictions highlights the ongoing geopolitical tension between energy security policies and environmental regulations. Increased access to Arctic resources could...

🔆Midday Wire·May 31

Production Data

Bakken Rig Count Holds at 30 as Oil Prices Retreat

North Dakota's active drilling rig count held at 30 on Sunday, May 31, as benchmark oil prices saw a midday retreat. The stability in the rig count, a key indicator of future production, comes amid volatile trading. West Texas Intermediate (WTI) crude was trading at $87.36 per barrel, down $1.54 or 1.73% for the day. The international benchmark Brent crude fell to $91.12, down $1.58 or 1.7%. The price for Bakken crude at the wellhead is typically discounted against WTI; the current differential is -$3.42. Natural gas was priced at $3.29 per MMBtu. The current rig count of 30 provides a snapshot of operator commitment to new well drilling. Historically, the number of active rigs is a leading indicator for oil production, with a lag of several months between drilling activity and peak output from new wells. A steady count suggests operators are maintaining, but not aggressively expanding, their drilling...

🔆Midday Wire·May 31

Workforce & Community

Bakken Rig Count Holds at 30 as Oil Prices Retreat from Highs

The number of active drilling rigs in North Dakota remained at 30 on Sunday, a key indicator of sustained operational activity in the Bakken formation. According to Bakken Wire's live data, this rig count provides a baseline for employment and service company demand across the Williston Basin. The stability in the rig count comes alongside a midday retreat in oil prices. West Texas Intermediate (WTI) crude was trading at $87.36 per barrel, down $1.54 or 1.73% for the session. The international benchmark Brent crude fell to $91.12, a decline of 1.7%. The price for Bakken crude at the wellhead is typically discounted against WTI; the current differential is $-3.42 per barrel. In the Bakken region, the rig count is closely tied to the health of local economies and workforce conditions. A steady count in the low 30s suggests a plateau in direct drilling employment and associated service sector jobs. This...

🔆Midday Wire·May 31

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Hold Steady at Elevated Levels Amid Market Pause

Oil prices were flat in quiet Sunday trading, with West Texas Intermediate (WTI) crude holding firm at $87.36 per barrel, according to live market data. The international benchmark Brent crude was also unchanged at $91.12. The stability follows a period of significant price gains driven by tightening global supplies and robust demand. The Bakken crude differential to WTI benchmark prices was recorded at -$3.42 per barrel. This means Bakken-grade crude is priced at approximately $83.94 per barrel at the wellhead, providing a strong revenue environment for operators in the Williston Basin. The slight narrowing of the discount from recent weeks improves netbacks for local producers. Natural gas prices also held steady at $3.29 per million British thermal units (MMBtu). While not a primary driver for most Bakken operators focused on oil, sustained natural gas prices above $3 support the economics of associated gas production and help mitigate flaring concerns in...

🌅Afternoon Wire·May 31

Rig Report

Bakken Rig Count Holds at 30, Up 4 From Last Week

The number of rigs actively drilling for oil and gas in North Dakota held firm at 30 on Sunday, May 31, 2026, according to live Bakken Wire data. The count showed no day-over-day change, with no new rigs added, removed, or moved. The current activity level represents an increase from the 26 rigs reported one week ago on May 24. Compared to one month ago on May 1, when 23 rigs were active, the Bakken rig fleet has grown by seven units. The stability in North Dakota aligns with a broader national trend of increasing drilling activity. According to a Baker Hughes survey reported by Bing News on May 29, the total number of oil and gas rigs actively drilling in the United States increased by four to 562. That marks the sixth consecutive weekly rise and the highest national rig count in a year. While the Bakken formation is...

🌅Afternoon Wire·May 31

Global Markets

Global Power Demand Surge Fuels Geopolitical Energy Race

A global surge in electricity demand, driven largely by artificial intelligence and data centers, is accelerating a geopolitical competition for fuel sources that could reshape energy markets critical to North Dakota's Bakken shale operators. According to reporting from OilPrice.com, the combination of an oil-based energy crisis, AI's "ballooning energy needs," and decarbonization efforts is driving renewed investment in nuclear power and liquefied natural gas (LNG) projects worldwide. Nuclear energy is becoming a key battleground. The World Nuclear Association projects global uranium demand will increase 28 percent by 2030 and nearly double by 2040, according to OilPrice.com. However, supply chains are dominated by Russian-controlled entities, pushing the U.S. to seek alternatives. "Used nuclear fuel is an incredible untapped resource in the United States," Assistant Secretary for Nuclear Energy Ted Garrish told World Nuclear News, as cited by OilPrice.com. This domestic push for nuclear fuel independence represents a long-term structural shift in...

🌅Afternoon Wire·May 31

Global Markets

Global Energy Crisis Deepens as Markets Reel from Iran War Disruption

The ongoing conflict involving Iran has precipitated the worst oil and gas supply disruption in history, according to a report from OilPrice.com. Three months after strikes began on February 28, the world has lost 1 billion barrels of crude oil supply, data from Kpler showed. The de facto closure of the Strait of Hormuz, which handles 20% of global oil and LNG supply, has collapsed traffic by about 90%, forcing Middle Eastern producers to curtail output. More than 10 million barrels per day (bpd) of crude were wiped off global daily production volumes. LNG volumes from Qatar and the UAE were also trapped, and Qatar advised its LNG export capacity may not return to pre-war levels for up to five years due to damage from strikes on the Ras Laffan complex. Global inventories are declining at an accelerating pace, with draws jumping to nearly 1.7 million bpd, suggesting further market...

🌅Afternoon Wire·May 31

Operator News

Kretinsky Eyes TotalEnergies Stake, Oil Prices Hit Six-Week Low

Czech billionaire Daniel Kretinsky sees potential to increase his stake in French energy major TotalEnergies, according to a report from Rigzone. Kretinsky, whose holdings are currently below 5 percent, stated that "if we felt the need to further diversify, we could continue increasing our stake in Total." For Bakken operators, major shifts in ownership of global integrated oil companies can signal broader investment trends and potential changes in capital allocation strategies for onshore U.S. assets. Meanwhile, oil prices settled at a six-week low on Friday, Rigzone reported. The decline was attributed to traders betting on a potential reopening of the Strait of Hormuz as truce negotiations continue. Lower global crude benchmarks directly impact the realized price for Bakken crude, influencing producer cash flow and drilling budgets in North Dakota's premier oil play. In a separate development, CB&I has won a contract to build five large LNG storage tanks for the...

🌅Afternoon Wire·May 31

Pipeline & Infrastructure

National, Global Pipeline and LNG Developments Hold Indirect Bakken Implications

Engineering firm Bechtel has received a contract to begin early work on an expansion of the Sabine Pass LNG export facility in Louisiana, according to a report from Rigzone. Cheniere Partners issued a "limited notice to proceed" for the contractor to launch early engineering and procurement activities. While not a direct Bakken project, expansions along the Gulf Coast LNG corridor are critical for providing eventual end-markets for natural gas produced in North Dakota. In California, a group of Democratic lawmakers is probing Sable Offshore's efforts to restart oil flows from the Santa Ynez unit, Rigzone reported. The legislators warned Sable's CEO about the "long-term legal and financial ramifications" of collaborating with the federal government to potentially circumvent state law. This regulatory tension on the West Coast underscores the challenges of moving hydrocarbons to market, which can affect the competitive landscape for Bakken crude shipped to other regions. Globally, South Africa's...

🌅Afternoon Wire·May 31

Regulatory

Iran, US Tentatively Agree to 60-Day Ceasefire Extension

The United States and Iran have tentatively agreed to renew a ceasefire for 60 days and launch further talks on Tehran's nuclear program, according to a report from Rigzone. The news source, citing a person with knowledge of the matter, reported the development on Friday, May 29. While the tentative agreement is a diplomatic matter centered on nuclear negotiations, such developments are closely watched by global energy markets. Stability in the Middle East, a major oil-producing region, is a perennial factor in the volatility of worldwide crude oil prices. For Bakken operators and royalty owners in North Dakota, the price of benchmark crude oils like West Texas Intermediate (WTI) is a primary determinant of profitability and drilling activity. Significant geopolitical events that threaten supply from other regions often lead to price spikes, while moves toward de-escalation can introduce downward pressure on prices by easing supply concerns. The reported 60-day extension...

🌅Afternoon Wire·May 31

Production Data

North Dakota Rig Count Holds at 30 as Oil Prices Provide Support

North Dakota's active drilling rig count remained steady at 30 on Sunday, May 31, 2026, as supportive oil prices create a stable environment for Bakken operators. The benchmark West Texas Intermediate (WTI) crude price was $87.36 per barrel, with the Bakken crude differential at a discount of $3.42. The current rig count is a critical indicator for future oil production in the state. Historically, the number of active drilling rigs correlates with production levels several months later, as new wells are drilled, completed, and brought online. A steady rig count suggests operators are maintaining a consistent development pace. With WTI holding firmly above $87, the economics for drilling in the Bakken formation remain favorable for many operators. The Brent crude benchmark was at $91.12, and natural gas was priced at $3.29 per MMBtu. The current price environment provides cash flow to sustain drilling programs without necessitating a rapid expansion of...

🌅Afternoon Wire·May 31