Tuesday, June 2, 2026

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Oil Prices

Oil Prices Retreat Tuesday Amid Mixed Market Signals

Oil prices declined in early trading Tuesday, June 2, 2026, with West Texas Intermediate (WTI) crude settling at $91.14 per barrel, a drop of $1.02 or 1.11%. The international benchmark Brent crude was at $93.91, down $1.07 or 1.13%. The price for Bakken crude, a key metric for North Dakota producers, maintained a differential of -$3.42 versus WTI. Natural gas prices showed a slight gain, rising by $0.02 to $3.20. The price movement follows a recent surge driven by geopolitical tensions. According to Rigzone, Brent and WTI rallied on Monday, June 1, after reports that Iran may halt negotiations with the United States. That geopolitical risk premium appears to be moderating in Tuesday's session. Meanwhile, corporate earnings reports highlight the complex environment for global oil companies despite higher price levels. Rigzone reported that Russian firm Rosneft saw an increase in profit in the first three months of 2026 on higher...

☀️Morning Wire·Jun 2

Rig Report

Bakken Rig Count Holds Steady at 29, Up 6 From Month Ago

The number of active drilling rigs in North Dakota's oil fields remained unchanged at 29 on Tuesday, June 2, according to the latest Bakken Wire live data. The count showed no daily movement, with no new rigs added, none removed, and none relocated since the previous report. The current activity level represents a significant increase from recent lows, underscoring a recent uptick in operator drilling programs. The rig count is up by two from one week ago, when 27 rigs were active. More notably, the count is up by six rigs, or roughly 26%, from a month ago, when only 23 rigs were actively drilling in the state. This sustained higher level of drilling activity comes amid a backdrop of strategic uncertainty for the Bakken's long-term future. According to a recent report from Bing News, North Dakota elected officials are pushing for rapid progress on the next generation of oil...

☀️Morning Wire·Jun 2

Daily Activity

Phoenix Operating Secures Four New Permits in Divide County

The North Dakota Department of Mineral Resources approved four new drilling permits on Monday, June 1, all filed by Phoenix Operating LLC for locations in Divide County. According to the DMR Daily Activity Report, the permits are for the Skabo field in Township 160N, Range 98W. The approved permits are for the Gina Ferrari 13-12-1 1H-LL and three wells on the Candy Ferrari pad: the 24-25-36 2H, 4H, and 5H. This concentrated permitting activity highlights Phoenix Operating's focus on developing a specific section in the western Bakken. Several previously confidential well statuses were updated in the report. Devon Energy Williston, L.L.C. had the Drovdal 5-8 5H in McKenzie County released from confidential status. Another Devon well, the Skaar 150-99-15-22-2H in the South Tobacco Garden field of McKenzie County, also had its status updated. Completion reports from major operators were filed. Hess Bakken Investments II, LLC reported the BW-Wilson-149-99-3625H-3 in McKenzie...

☀️Morning Wire·Jun 2

Global Markets

China's LNG Imports Rebound Ahead of Summer Cooling Demand

China, the world's largest LNG buyer, imported 4.9 million tons of liquefied natural gas in May, according to a Bloomberg report cited by OilPrice.com. This marks a slight annual increase and reverses a months-long decline in imports, driven by a rebound ahead of peak summer electricity demand for air conditioning. The increase follows a period of severe disruption. A war in the Middle East took out a quarter of global LNG capacity, pushing prices significantly higher and dampening importers' appetite. China's April LNG imports had plummeted to just 3.5 million tons, the lowest since 2018 and down 30% year-on-year, according to data from Kpler. Overall Asian LNG imports dropped to a seven-year low in March, falling 4.3% year-on-year to 21.12 million tons, the Gas Exporting Countries Forum (GECF) reported. For Bakken operators, the volatility in global LNG markets directly impacts the pricing and marketability of associated natural gas produced from...

☀️Morning Wire·Jun 2

Global Markets

Oil Retreats on Ceasefire Hopes, Venezuela Exports Hit 7-Year High

Oil prices pulled back early Tuesday after diplomatic efforts to de-escalate tensions in Lebanon calmed commodity markets, according to OilPrice.com. Brent crude for August delivery was down 1.7% to trade at $93.35 per barrel, while WTI crude for July delivery fell to $90.65/bbl. The retreat followed a claim by President Donald Trump on Truth Social that talks are advancing rapidly and that both Israel and Hezbollah had agreed to halt hostilities. The Lebanese Embassy in Washington stated that Hezbollah had accepted the terms of a U.S. proposal for a mutual cessation of attacks, OilPrice.com reported. Despite this, Iranian state media reported that indirect communications with the U.S. had been suspended in protest over Israeli military operations in Lebanon. Traders appeared reluctant to make large directional bets, waiting for confirmation that any ceasefire effort can survive. Meanwhile, sustained higher oil prices are projected to impact global demand dynamics. A report from...

☀️Morning Wire·Jun 2

Operator News

Global Tensions, Subsidies, Hurricane Forecast Shape Energy Outlook

Conflicting statements between the United States and Iran regarding war negotiations are creating market uncertainty, according to a senior analyst. Samer Hasn, a Senior Market Analyst at XS.com, noted the conflicting headlines 'around the clock,' Rigzone reported Tuesday. For Bakken operators, prolonged geopolitical instability in key oil-producing regions often supports volatile global crude prices, which directly influence the economics of drilling in North Dakota. In European energy policy, the Netherlands has approved a substantial subsidy to rebuild its natural gas inventories. The country's government backed a subsidy of up to $1.2 billion for state-owned EBN Capital BV to refill depleted gas reserves, Rigzone reported Monday. While a European domestic policy, large-scale storage buying can influence global LNG and gas market dynamics, indirectly affecting associated gas production economics in the Bakken. The National Oceanic and Atmospheric Administration (NOAA) is forecasting a 'below normal' Atlantic hurricane season for 2026, according to a...

☀️Morning Wire·Jun 2

Pipeline & Infrastructure

Global Energy Deals Proceed Amid Geopolitical, Market Headwinds

International energy projects continued to advance Monday with new partnership approvals and agreements, while geopolitical tensions caused operational disruptions for a major shipper, according to industry reports. In West Africa, Europa Oil & Gas is moving closer to drilling the Barracuda prospect offshore Equatorial Guinea after the country approved the entry of a new Chinese partner into the relevant license, Rigzone reported. The approval clears a farm-out deal for the block. Separately, Italian energy giant Eni and compatriot Seri Industrial agreed to launch a partnership that spans the lithium iron phosphate battery value chain in Italy, according to a separate Rigzone report. The agreement signals continued energy sector investment in integrated new energy supply chains. These developments occur against a backdrop of ongoing market volatility and supply chain risks. Norwegian shipping company Knutsen reported that one of its vessels chartered to QatarEnergy has been temporarily idled within the Strait of...

☀️Morning Wire·Jun 2

Production Data

Bakken Rig Count Holds at 29 as Oil Prices Retreat from Highs

North Dakota's active rig count held firm at 29 on Tuesday morning, even as crude oil prices retreated from recent highs. The steady drilling pace suggests operators are maintaining core development plans despite short-term price volatility. According to live Bakken Wire data, West Texas Intermediate (WTI) crude traded at $91.14 per barrel, down $1.02 for a 1.11% decline. The international Brent benchmark followed suit, falling 1.13% to $93.91. North Dakota's Bakken crude traded at a discount of $3.42 to WTI, putting the local price at approximately $87.72. Natural gas held at $3.20 per MMBtu. The current rig count of 29 provides a concrete indicator of operator activity levels in the Williston Basin. The Bakken formation is North Dakota's primary oil-producing region, and the number of active drilling rigs is a leading indicator of future production. Historically, a sustained rig count in this range supports a stable production outlook for the...

☀️Morning Wire·Jun 2

🔆Midday Wire11:00 AM CST

Oil Prices

Oil Prices Rally Amid Major Inventory Draw, OPEC+ Warns on Hormuz

West Texas Intermediate crude oil prices gained $1.28 Tuesday to trade at $93.44 per barrel, a 1.39% increase for the session. Brent crude rose $0.84 to $95.82. The rally followed a report showing a significant tightening of U.S. commercial crude inventories. According to data from OilPrice.com, the American Petroleum Institute estimated a draw of 6.75 million barrels from U.S. crude oil inventories for the week ending May 29. This exceeded analyst expectations for a 3.6 million barrel draw and followed a 2.8 million barrel decline the prior week. Inventories at the Cushing, Oklahoma, storage hub also fell by 279,000 barrels. Supporting the bullish sentiment was a continued drawdown from the U.S. Strategic Petroleum Reserve (SPR), with 8 million barrels released last week, bringing the total to 357.1 million barrels. OilPrice.com noted this is the lowest SPR level since January 2024. The data also showed U.S. production rose slightly to 13.715...

🔆Midday Wire·Jun 2

Global Markets

Global Demand Shifts, Geopolitical Strains Cloud Bakken Outlook

Global oil markets are facing significant headwinds from weakening demand and shifting geopolitical alliances, creating an uncertain price backdrop for Bakken Shale producers. According to Rigzone, analysts at J.P. Morgan see increasing monthly oil demand losses, tracking a global decline of 2.8 million barrels per day in March, 4.3 million barrels per day in April, and 5.6 million barrels per day in May. This sustained drop in consumption applies downward pressure on the crude prices that determine profitability for North Dakota's drillers and royalty owners. The demand figures, cited from a J.P. Morgan report published Tuesday, highlight the persistent challenges in the global market that directly impact the Williston Basin's operating margins. Simultaneously, a key geopolitical relationship underpinning global energy flows is under scrutiny. According to an analysis from OilPrice.com, Russia's energy "lifeline" to China is becoming a "noose." The report details a cooling from the "no limits" partnership declared...

🔆Midday Wire·Jun 2

Global Markets

Global LNG, Power Market Shifts from Hormuz Crisis Pressure Energy Systems

The ongoing closure of the Strait of Hormuz is reshaping global natural gas flows and exposing deep vulnerabilities in electricity markets, according to analysis from OilPrice.com. The disruption, which began after Qatar shut down gas production on March 2, removed roughly 5.5 million to 6 million tonnes of LNG supply per month from Asia, causing prices to spike and forcing major buyers to seek new suppliers. India has emerged as a surprising outlier, increasing LNG imports despite record-high prices. After a dip to 1.67 million tonnes in March, India's imports climbed to 2.1 million tonnes in May, according to OilPrice.com. This surge is primarily driven by a severe heatwave, with peak power demand hitting a record 270.82 GW on May 21. To meet this demand, India has radically shifted its supply sources. With Qatar—which supplied 45% of India's LNG in 2025—effectively offline, India has turned to other exporters. The United...

🔆Midday Wire·Jun 2

Operator News

North America Rig Count Jumps 28; M&A Activity Continues Offshore, Overseas

North America's active rig count increased by 28 this week, according to the latest data from Baker Hughes reported by Rigzone. The rise in drilling activity is a positive signal for oilfield service demand across the continent, including in the Bakken formation. In other operator news, consolidation continues in the drilling sector. Offshore drilling contractor Vantage Drilling has agreed to be acquired by Eldorado, Rigzone reported. The deal is intended to create a "more scalable offshore drilling platform," according to the source. This move highlights ongoing strategic shifts within the offshore segment, which can influence the broader service and equipment market relevant to onshore operators. Separately, Australian shale gas company Tamboran has completed a merger, bringing Falcon under its corporate umbrella, Rigzone reported. The transaction consolidates Tamboran's position in the onshore Beetaloo Basin of Australia's Northern Territory, giving the company a leading 2.8 million net prospective acres. While this development...

🔆Midday Wire·Jun 2

Pipeline & Infrastructure

Global Tensions, Caspian Project Drive Midday Oil Market Moves

Oil markets remain volatile midday Tuesday as analysts highlight conflicting statements regarding the ongoing war between the United States and Iran, according to reports from Rigzone. Samer Hasn, a Senior Market Analyst at XS.com, noted, "We hear and read conflicting statements and headlines around the clock regarding negotiations between the United States and Iran to end this war." This uncertainty follows a rally in crude benchmarks on Monday, with Rigzone reporting that Brent and WTI surged after reports Iran may halt U.S. negotiations. For Bakken operators, geopolitical instability that supports higher global crude prices can improve netbacks for light sweet Bakken crude, though local differentials are also influenced by regional pipeline and takeaway capacity. Sustained tensions in the Middle East often translate to price support for U.S. shale producers, including those in the Williston Basin. In other global energy development news, BP has started commercial gas production operations at the...

🔆Midday Wire·Jun 2

Production Data

Bakken Rig Count Holds at 29 as Oil Prices Top $93

North Dakota's oil industry is signaling stability, with the active rig count holding at 29 as benchmark crude prices trade above $93 per barrel. According to midday data from Bakken Wire, West Texas Intermediate (WTI) crude was priced at $93.44 on Tuesday, a gain of $1.28. The current rig count, a key indicator of future drilling activity, has remained in a narrow range in recent months. The Bakken formation, North Dakota's primary oil-producing region, has historically seen production levels follow rig count trends with a lag of several months. A steady count suggests operators are maintaining, but not aggressively expanding, their drilling programs. Supporting this activity, oil prices provide a favorable economic backdrop. Alongside WTI, the international benchmark Brent crude traded at $95.82. The local Bakken crude differential was reported at a discount of $3.42 per barrel versus WTI. Natural gas was priced at $3.17 per MMBtu. Analysts generally view...

🔆Midday Wire·Jun 2

Workforce & Community

Bakken Rig Count Holds at 29 as Oil Prices Rise Above $93

The number of active drilling rigs in North Dakota's Bakken formation held steady at 29 on Tuesday, as benchmark oil prices continued a recent upward climb. West Texas Intermediate crude traded at $93.44 per barrel, a gain of $1.28, according to live market data. The current rig count, a key indicator of oilfield employment and service company demand, has remained in a narrow range for several months. This level of activity represents a fraction of the peak seen during the previous boom cycles but signifies a stabilized, mature phase of development for the basin. Analysts often view a stable rig count as supportive of consistent local employment and predictable demand for housing and services. "Historically, the rig count is the primary driver for workforce size in the oilfields," said a regional economist familiar with the Bakken. "When rigs are added or dropped rapidly, it creates volatility in hiring, housing markets,...

🔆Midday Wire·Jun 2

Regulatory

Bakken Rigs Hold at 29 Amid $93 Oil, Regulatory Focus on Efficiency

North Dakota's active drilling rig count held steady at 29 on Tuesday, as the Bakken formation's development continues under a mature state regulatory framework shaped by past booms and current efficiency demands. The price of West Texas Intermediate (WTI) crude, a key benchmark, traded at $93.44 per barrel, providing a supportive economic backdrop for ongoing operations. The North Dakota Industrial Commission's Oil and Gas Division oversees the regulatory landscape, with key long-term themes including gas capture targets and well spacing rules. The state's gas flaring targets, which aim to capture a high percentage of associated natural gas produced alongside oil, have been a central policy focus for years. These rules are designed to reduce waste and emissions while ensuring the economic utilization of resources. Another foundational regulatory element is well spacing, which dictates the density and placement of wells within a drilling unit. These rules are crucial for managing reservoir...

🔆Midday Wire·Jun 2

🌅Afternoon Wire4:00 PM CST

The Afternoon Take

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Oil Prices

Oil Prices Surge on Major Crude Draw, Persistent Supply Concerns

U.S. oil prices rose sharply Tuesday afternoon, driven by a significant drop in commercial crude inventories and ongoing geopolitical tensions affecting global supply routes. West Texas Intermediate (WTI) crude settled at $93.45 per barrel, a gain of $1.29 or 1.4%, according to live price data. Brent crude climbed 0.87% to $95.81. The American Petroleum Institute (API) estimated that U.S. crude oil inventories fell by 6.75 million barrels in the week ending May 29, according to a report from OilPrice.com. This draw was nearly double the 3.6 million barrel drop analysts had expected and follows a decline of 2.8 million barrels the prior week. Inventories at the Cushing, Oklahoma delivery hub also fell by 279,000 barrels. Despite the recent draws, U.S. crude inventories have risen by 16 million barrels so far this year. The U.S. Strategic Petroleum Reserve (SPR) saw 8 million barrels leave storage last week, bringing the total to...

🌅Afternoon Wire·Jun 2

Rig Report

Bakken Rig Count Holds at 29 as Hess Adds, Devon Removes Units

The number of active drilling rigs in North Dakota's Bakken formation held steady at 29 on Tuesday, June 2, according to live data from Bakken Wire. The count saw one new rig added and one removed, resulting in no net change from the previous day. Hess Bakken Investments II, LLC added the Nabors X27 rig to a location in Williams County (156-97-3). Concurrently, Devon Energy Williston, L.L.C. released the Nabors B 13 rig from McKenzie County (150-99-11). The current activity level represents a slight increase from one week prior, when 27 rigs were active, and a more significant gain from a month ago, when the state's count stood at 23 rigs. This gradual upward trend in the Bakken contrasts with a broader North American surge; according to Rigzone, the continent added 28 rigs week-on-week in the latest Baker Hughes count. The steady rig count in North Dakota unfolds against a...

🌅Afternoon Wire·Jun 2

Global Markets

Global Demand Shifts, Geopolitical Strains Create Uncertain Backdrop for Bakken

Global oil demand losses accelerated through the spring, creating a challenging price environment for Bakken producers. Analysts at J.P. Morgan tracked increasing monthly demand losses, reporting a drop of 2.8 million barrels per day in March, 4.3 million barrels per day in April, and 5.6 million barrels per day in May, according to Rigzone. This sustained erosion in consumption underscores the fragile nature of the post-pandemic demand recovery and presents a headwind for North Dakota's oil output, which is sensitive to global price signals. The figures highlight the volatile market conditions Bakken operators must navigate. Meanwhile, significant recalibrations in key international energy relationships could have long-term implications for global flows. According to an analysis from OilPrice.com, Russia's strategic energy partnership with China is under strain. The "no limits" friendship declared in a joint communiqué on February 4, 2022, has given way to a more measured Chinese approach, the report states....

🌅Afternoon Wire·Jun 2

Global Markets

Global LNG Shifts, Power Market Stress, and Beetaloo Consolidation

India's LNG imports surged to 2.1 million tonnes in May 2026 despite record-high Asian gas prices, with the United States becoming its largest supplier, according to OilPrice.com. This defied a regional downturn where Asian LNG imports fell to 18.8 million tonnes in April, their lowest since 2020. India's demand rebound was driven by an extreme heatwave, with May power consumption jumping over 11% year-on-year and peak demand hitting a record 270.82 gigawatts. With its traditional supplier Qatar offline since March, India replaced volumes with cargoes from Oman, Nigeria, and the US. US LNG exports to India increased more than sixfold, from 137,000 tonnes in January to 907,000 tonnes in May. The ongoing disruption of LNG flows through the Strait of Hormuz is serving as a global stress test for electricity markets, exposing their continued vulnerability to fossil fuel price shocks, a separate OilPrice.com report noted. The crisis highlights that even...

🌅Afternoon Wire·Jun 2

Operator News

Crude Prices Surge Amid Iran Tensions; BP Starts Caspian Project

Bakken crude prices are poised for volatility as tensions between the United States and Iran drive a global market rally, according to industry reports. Brent and West Texas Intermediate (WTI) crude benchmarks surged following reports that Iran may halt negotiations with the U.S., as reported by Rigzone on June 1. The market movement comes amid conflicting statements regarding the status of negotiations to end the ongoing conflict. "We hear and read conflicting statements and headlines around the clock regarding negotiations between the United States and Iran to end this war," said Samer Hasn, a Senior Market Analyst at XS.com, in a June 2 report cited by Rigzone. Such geopolitical uncertainty typically injects a risk premium into oil prices, which can directly benefit Bakken operators and royalty owners through higher wellhead revenues, though it also introduces volatility. In separate operator news, BP has commenced a significant new natural gas project in...

🌅Afternoon Wire·Jun 2

Production Data

Bakken Rig Count Holds at 29 as Oil Prices Surge Above $93

North Dakota's active drilling rig count held steady at 29 on Tuesday as crude oil prices posted strong gains, creating a favorable but seemingly cautious backdrop for Bakken production. The West Texas Intermediate (WTI) benchmark rose $1.29 to settle at $93.45 per barrel, while the international Brent crude price gained 83 cents to $95.81, according to live Bakken Wire data. The price for Bakken crude at the wellhead remains competitive, with a differential of $3.42 below WTI, meaning Bakken blend was priced at approximately $90.03. Natural gas prices were recorded at $3.17 per MMBtu. The sustained high oil price environment, with WTI up 1.4% for the session, typically encourages capital investment and drilling activity. However, the static rig count of 29 suggests major operators in the Williston Basin are maintaining a disciplined approach to growth despite supportive prices. The rig count is a leading indicator for future oil production, as...

🌅Afternoon Wire·Jun 2

Workforce & Community

Bakken Rig Count Holds at 29 as Oil Prices Rally Above $93

The active rig count in North Dakota held steady at 29 for the week ending June 2, 2026, according to Bakken Wire live data. This figure, a key indicator of drilling activity and near-term employment, has remained relatively stable in recent months, suggesting the region's oilfield workforce has reached a new equilibrium following the post-pandemic boom and subsequent adjustments. The current activity level is supported by strong crude oil prices. West Texas Intermediate (WTI) crude traded at $93.45 per barrel on Tuesday, up $1.29 from the previous session. The international Brent benchmark was at $95.81. The Bakken crude differential—the discount at which local crude trades against WTI—was -$3.42 per barrel. These price levels provide sufficient economics for operators to maintain, but not aggressively expand, drilling programs in the play. Historically, the rig count in the Bakken formation has been a direct driver of employment, housing demand, and economic activity in...

🌅Afternoon Wire·Jun 2

Pipeline & Infrastructure

Bakken Pipeline Utilization Tight as Rig Count Holds Steady

Active drilling in North Dakota's Bakken formation held at 29 rigs on Tuesday, as strong pipeline takeaway capacity continued to support a narrow discount for local crude. The Bakken price differential to the U.S. benchmark West Texas Intermediate (WTI) was $-3.42 per barrel. The current differential, which represents the price Bakken crude sells for compared to WTI at the Cushing, Oklahoma hub, indicates that regional pipeline infrastructure is effectively moving oil to market. A persistently narrow or positive differential typically signals that pipeline capacity is sufficient or underutilized, reducing the need for more expensive transport like rail. General industry context indicates that the Williston Basin's midstream network has expanded significantly since the early 2010s. Major pipelines, including the Dakota Access Pipeline (DAPL), provide direct access to Gulf Coast refineries and export terminals. Additional capacity on systems like the Enbridge Mainline and the Butte Pipeline also help move crude to markets...

🌅Afternoon Wire·Jun 2