Wednesday, June 3, 2026

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Oil Prices

Oil Prices Surge Past $95 as Geopolitical Uncertainty Mounts

Oil prices posted strong gains on Wednesday, with West Texas Intermediate (WTI) crude surpassing $95 per barrel. The front-month WTI contract settled at $95.88, a rise of $2.12 or 2.26%, while global benchmark Brent crude advanced to $98.10, according to live market data. The price increase provides a direct boost to Bakken producers' revenue calculations. The rally was fueled by renewed geopolitical tensions. According to Rigzone, crude gained as doubts emerged over a US-Iran peace agreement, reintroducing a risk premium to the market. Furthermore, analysts have advised OPEC+ that supply disruptions related to the Strait of Hormuz, a critical global oil chokepoint, are expected to persist through the end of the year. The ongoing uncertainty supports higher global benchmark prices, which in turn lifts the value of domestic crudes like those produced in the Bakken. The Bakken crude differential to WTI tightened to -$3.42 per barrel on Wednesday. This narrower...

☀️Morning Wire·Jun 3

Rig Report

North Dakota Rig Count Holds at 29 Amid Industry Uncertainty

The number of active drilling rigs in North Dakota's Bakken formation held steady at 29 on Wednesday, June 3, according to live data from Bakken Wire. There was no change from the previous day, with no new rigs added, none removed, and none relocated. The current activity level represents a gain of two rigs compared to one week ago, when 27 rigs were active, and a more significant increase of six rigs from the 23 rigs operating one month ago on May 4. This gradual upward trend in the state's drilling fleet coincides with a broader North American increase, as the continent added 28 rigs week-on-week, according to a June 2 report from Baker Hughes cited by Rigzone. The stability in the rig count comes as the industry faces significant long-term questions about the future of production in the Bakken. According to a June 1 report from Yahoo Finance, North...

☀️Morning Wire·Jun 3

Daily Activity

Hess, Phoenix Secure Permits; Continental Wells Post Strong Initial Rates

The North Dakota Department of Mineral Resources approved four new drilling permits on Tuesday, June 2, according to its daily activity report. Phoenix Operating LLC received three permits for the Brynn Ferrari pad in Divide County, while Hess Bakken Investments II, LLC secured one permit in Williams County. The three Phoenix permits (42991, 42992, 42993) are for the Brynn Ferrari 15-10-3 2H, 3H, and 5H wells, all located in the NE NW of Section 22-160N-98W within the Skabo field in Divide County. Hess's permit (42994) is for the GO-BLAKE- 156-97-0607H-2U well in the Dollar Joe field of Williams County. In confidential status changes, Hess Bakken Investments II had two wells in Williams County transition out of confidential status. Well 41893 (GO-PETERS-157-97-3220H-4) and well 41898 (GO-RAY-157-97-3321H-3), both located in the SE SW of Section 33-157N-97W, are no longer listed as confidential. The report also listed one well as plugged or producing....

☀️Morning Wire·Jun 3

Global Markets

India's Slowing Oil Demand Growth Adds Global Headwind for Bakken

Analysts have sharply cut their estimates for India's oil demand growth this year, projecting the weakest consumption uptick since the COVID-19 pandemic due to a supply crunch and higher fuel prices. According to a report from OilPrice.com, this slowdown in one of the world's largest crude importers represents a new layer of uncertainty for global oil markets, which directly influence pricing and investment decisions in North Dakota's Bakken formation. Analytics firms Kpler and Rystad Energy have slashed their gasoline and diesel demand growth estimates for India by between 30% and 90%, according to figures cited by Bloomberg. Kpler last month reduced its refined products demand growth forecast by 39%, or about 77,000 barrels per day (bpd), to around 78,000 bpd. Specifically, its gasoline demand growth estimate was cut by 40% to 38,000 bpd, and diesel demand growth was revised down by about 30% to 42,000 bpd. “Rising crude import costs,...

☀️Morning Wire·Jun 3

Global Markets

Global Roundup: Brazil Solar Freeze, Iran Hits Kuwait, Japan's $19.4B Aid

BlackRock-backed Atlas Renewable Energy has frozen $1 billion in planned solar investment in Brazil, citing crippling grid constraints. The company's CEO, Carlos Barrera, announced the halt of 1.5 gigawatts of projects on Wednesday, according to OilPrice.com. The decision stems from high curtailment rates, where solar power is rejected by the grid due to lagging transmission infrastructure. Curtailment rates for Atlas's operational projects reached 15%-25% this quarter, and Rystad Energy estimates Brazil's solar curtailment hit 27% in 2025. In the Middle East, Iranian drones and missiles struck Kuwait International Airport overnight, killing at least one person and causing significant damage, OilPrice.com reported. Kuwait suspended air traffic and activated emergency procedures. Iran's Revolutionary Guard stated the attack was retaliation for U.S. military actions. U.S. Central Command intercepted additional missiles targeting Kuwait and Bahrain and launched retaliatory strikes on an Iranian facility on Qeshm Island near the Strait of Hormuz. The UAE called...

☀️Morning Wire·Jun 3

Operator News

Oil Prices Rise on Renewed Mideast Tensions, Shipping Gains Noted

Oil prices were trading higher for a third consecutive session Wednesday, according to Rigzone, as market pessimism grew over the prospects of a U.S.-Iran deal. Such a deal could have paved the way for a reopening of the Strait of Hormuz, a critical oil transit chokepoint. The price support follows a fresh flare-up in Middle East tensions. Rigzone reported that U.S. forces intercepted Iranian ballistic missiles and drones aimed at neighboring U.S. allies and struck a command center in Iran in response, testing a fragile ceasefire. Ole S. Hansen, Head of Commodity Strategy at Saxo Bank, cited the geopolitical developments as a key factor driving market sentiment. For Bakken producers, higher global crude benchmarks typically translate to stronger wellhead economics for the light, sweet crude extracted from the North Dakota formation. The renewed risk premium also underscores the importance of stable export routes for U.S. oil, with the Bakken being...

☀️Morning Wire·Jun 3

Pipeline & Infrastructure

Princeton Endowment Reverses Divestment Pledge; Tamboran Merges Falcon Assets

Princeton University's endowment is backtracking on its pledge to divest from publicly traded oil and gas companies, according to a report from Rigzone. The development, reported June 2, marks a significant reversal for a major institutional investor that had previously committed to moving capital away from the fossil fuel sector. Separately, Tamboran Resources has completed a merger bringing Falcon Oil & Gas under its corporate structure, Rigzone also reported June 2. The merger consolidates Tamboran's position in the Beetaloo Basin onshore Australia's Northern Territory into a leading 2.8 million net prospective acres. For Bakken operators and investors, Princeton's decision signals a potential shift in the investment landscape. Large institutional capital flowing back into publicly traded energy companies could improve access to equity markets for producers with Bakken exposure. Such moves may reflect a longer-term view on the continued necessity of oil and natural gas in the global energy mix, even...

☀️Morning Wire·Jun 3

Production Data

Rig Count Steady at 29 as High Oil Prices Support Bakken Activity

North Dakota's active drilling rig count held steady at 29 on Wednesday, as sustained high oil prices provide a supportive backdrop for Bakken Shale operators. The stability in the rig count comes alongside a significant price rally, with West Texas Intermediate (WTI) crude settling at $95.88 per barrel, a gain of $2.12, according to live Bakken Wire data. The Brent international benchmark followed a similar trajectory, reaching $98.10. The local Bakken crude differential, which represents the discount or premium for oil produced in the region, was reported at -$3.42 versus WTI. This places the implied price for Bakken crude at approximately $92.46 per barrel at the wellhead. Natural gas prices were reported at $3.21 per MMBtu. Historically, the rig count serves as a leading indicator for future oil production, with a typical lag of several months between a new well being drilled and it contributing to output. A stable or...

☀️Morning Wire·Jun 3

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Crude Jumps Over $2 on Major U.S. Inventory Draw, Global Supply Shifts

U.S. crude oil prices surged more than two percent on Wednesday, propelled by a massive drawdown in national inventories and ongoing global supply diversification efforts in the wake of Middle Eastern disruptions. West Texas Intermediate (WTI) crude was trading at $95.85 per barrel, up $2.09, while the international benchmark Brent crude rose $1.93 to $97.93, according to live price data. The primary catalyst for the rally was data from the U.S. Energy Information Administration (EIA), which reported commercial crude inventories fell by 8.0 million barrels for the week ending May 29. According to OilPrice.com, this draw brings stockpiles to 433.7 million barrels, placing them 3% below the five-year average for this time of year. The report also showed total product supplied, a proxy for demand, averaged 20.4 million barrels per day over the last four weeks, up 3.0% year-over-year. The significant inventory decline underscores a tightening physical market, supporting higher...

🔆Midday Wire·Jun 3

Global Markets

Kuwait Eyes Oil Storage Expansion Amid Market Upheaval

Global energy markets are facing continued volatility, with Kuwait considering an expansion of its global oil storage capacity, according to Rigzone. This development comes amid what the source described as "unprecedented upheaval" stemming from the U.S. and Israeli campaign against Iran that began in late February 2026. Separately, chemical and energy group INEOS has entered a deal to supply liquefied natural gas (LNG) to Asia, Rigzone also reported. The agreement with Japanese conglomerate Marubeni marks INEOS' first LNG deliveries to the Asia-Pacific region. For Bakken operators, these moves highlight the interconnected nature of global energy markets and their direct impact on North Dakota's oil fields. Increased strategic oil storage by major producers like Kuwait can influence global crude inventories and price benchmarks, which ultimately determine the profitability of Bakken crude. Market upheaval typically leads to heightened price volatility, affecting drilling plans and cash flow for independent producers. The new LNG...

🔆Midday Wire·Jun 3

Global Markets

Global Energy Shock Deepens as Iraq Seeks Export Fix, Bakken Faces Uncertainty

The economic shock from the ongoing closure of the Strait of Hormuz is deepening, with new warnings for the UK economy and a scramble by Iraq to rebuild oil exports, according to global reports. For Bakken operators, the sustained global supply disruption underscores a volatile price environment and the strategic importance of stable pipeline access. Britain's independent fiscal watchdog, the Office for Budget Responsibility (OBR), warned that government borrowing is set to spike due to the Iran war, according to OilPrice.com. The OBR admitted it underestimated the effects of the last energy price shock from the Ukraine war and is applying those lessons to the current crisis. Oil prices have jumped around 40% since the war began in March, with European wholesale gas prices doubling. Economists warn stalled peace talks will prolong disruption to the critical Hormuz shipping lane. The Bank of England warned in a worst-case scenario that continued...

🔆Midday Wire·Jun 3

Operator News

Operators Invest in Storage, Renewables, AI Safety

Spanish energy companies Iberdrola and Repsol have announced significant investments in energy storage and renewable fuels, according to separate reports from Rigzone. Meanwhile, a group of energy companies including Bakken operator Chord Energy has teamed up for a new AI-powered safety initiative. Iberdrola has started up Spain's largest battery energy storage project, Rigzone reported. The facility has 58 MW of power and 120 MWh of storage capacity. The project marks a step forward in the company's commitment to energy storage as a key pillar for electrification and renewable integration. Repsol has added 200,000 tons of annual capacity for renewable fuel production, Rigzone reported. The Spanish energy company is producing renewable diesel at its Puertollano Industrial Complex in Ciudad Real. This is its second plant dedicated exclusively to producing 100 percent renewable fuels. In a development more directly relevant to the Bakken, data analytics firm Enverus revealed it has teamed up...

🔆Midday Wire·Jun 3

Pipeline & Infrastructure

Midday Roundup: Oil Prices Rise Amid Mideast Tensions, LPG Earnings Up

Oil prices were trading higher for a third consecutive session Wednesday, according to Rigzone. Market pessimism is growing over the prospects of a U.S.-Iran deal that could reopen the Strait of Hormuz, Ole S. Hansen, Head of Commodity Strategy at Saxo Bank, told the outlet. The price support follows renewed Middle East tensions. Rigzone reported that Kuwait and Bahrain were caught in the crossfire of one of the most serious regional flare-ups since a ceasefire went into effect in early April. These developments contribute to a risk premium for global crude benchmarks, which directly influence the pricing of Bakken crude oil at the wellhead. In related energy transport news, BW LPG reported a year-over-year increase in shipping revenue, Rigzone noted. The company stated that current earnings continue to be supported by trading inefficiencies and a shortage of available vessels on the U.S.-Far East trade route. A tight market for liquefied...

🔆Midday Wire·Jun 3

Regulatory

Princeton Endowment Reverses Course on Fossil Fuel Divestment

Princeton University's endowment is reversing its high-profile pledge to divest from publicly traded oil and gas companies, according to a report from Rigzone. The news, published on June 2, 2026, marks a significant retreat from a commitment that had been held up as a win for the fossil fuel divestment movement. While the specific reasons for the reversal were not detailed in the source report, such decisions are often driven by the financial performance and stability of energy investments. Endowments like Princeton's have fiduciary duties to maximize returns for the institution's long-term benefit. This backtracking underscores the complex financial calculus large investors face when balancing stated environmental goals with investment performance and portfolio diversification. For the Bakken formation, where numerous operators are publicly traded companies, this type of news is a reminder of the ongoing pressure from some institutional investors and the volatility of investment trends. However, a reversal by...

🔆Midday Wire·Jun 3

Production Data

Bakken Rig Count Holds at 29 as Oil Prices Surge Past $95

North Dakota's active rig count held steady at 29 this week as global oil prices surged, with WTI crude topping $95 per barrel, according to midday Bakken Wire data. The current drilling activity level suggests operators are maintaining a cautious approach to adding new wells despite the strong price environment. West Texas Intermediate (WTI) crude was trading at $95.85 on Wednesday, June 3, a gain of $2.09 or 2.23%. The international benchmark Brent crude was at $97.93. The Bakken crude differential—the discount at which Bakken barrels sell compared to WTI—was narrow at -$3.42. This combination of high absolute prices and a tight differential is financially favorable for producers in the Williston Basin. Historically, the rig count is a leading indicator of future oil production, with a lag of several months between spudding a new well and its contribution to output. A count of 29 rigs is consistent with a maintenance-level...

🔆Midday Wire·Jun 3

Workforce & Community

Bakken Rig Count Holds at 29 as High Oil Prices Support Workforce Stability

The North Dakota oil and gas workforce is operating on a stable, but moderated, platform as the active rig count held at 29 amid strong crude prices, according to live Bakken data for June 3, 2026. West Texas Intermediate (WTI) crude traded at $95.85 per barrel, a gain of $2.09 on the day. The current rig count, a key indicator of drilling activity and direct oilfield employment, reflects a carefully managed pace of operations by Bakken producers. While significantly lower than the peak of over 200 rigs during the previous boom, the current level suggests a consolidation around core, high-efficiency areas of the Williston Basin. High commodity prices provide a crucial economic foundation for western North Dakota communities. With WTI sustaining levels above $95 and the Bakken price differential at a relatively narrow $-3.42 per barrel versus WTI, operators have the revenue certainty to maintain current staffing levels and capital...

🔆Midday Wire·Jun 3

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Surge Over 2% as Geopolitical Risks Outweigh Record Supply

Front-month crude oil futures posted strong gains on Wednesday, with West Texas Intermediate (WTI) surging $2.61 to settle at $96.37 per barrel, a gain of 2.78%. The global benchmark, Brent crude, rose $2.04 to $98.04. The Bakken crude differential widened to a $3.42 discount to WTI. The rally underscores a significant shift in market sentiment since the start of the year, according to analysis from OilPrice.com. While traders began 2026 anticipating a glut with supply growth outpacing demand, the narrative has been upended by concerns over whether oil can reliably reach consumers, not whether it can be produced. This distinction between production capacity and deliverable supply has become critical, the report notes. Geopolitical tensions surrounding key global chokepoints, specifically the Strait of Hormuz, have heightened market sensitivity. A significant portion of the world's spare production capacity is concentrated in the Persian Gulf, but a barrel trapped behind a geopolitical disruption...

🌅Afternoon Wire·Jun 3

Rig Report

Bakken Rig Count Rises to 31, Marking Steady Two-Month Climb

North Dakota's active drilling rig count increased by two to 31 on Wednesday, according to live rig data from Bakken Wire. The state added two new rigs and saw one relocation, with no rigs taken offline. The new rigs include Phoenix Operating LLC's T&S DRILLING 2 in Divide County (162-95-28) and TOBACCO GARDEN SWD LLC's T&S DRILLING 3 in McKenzie County (152-97-31). In a separate move, OASIS PETROLEUM NORTH AMERICA LLC relocated the NABORS B26 rig to a new location in Mountrail County (157-93-13). The current count of 31 rigs continues a steady upward trend observed over the past two months. The active fleet is up four rigs from one week ago, when 27 rigs were active on May 27, 2026. Furthermore, the count has increased by eight rigs from the total of 23 active just one month ago on May 4, 2026. This sustained increase in drilling activity occurs...

🌅Afternoon Wire·Jun 3

Global Markets

Global Market Moves Signal Shifting Energy Flows

Global energy markets are adjusting to ongoing geopolitical instability, with new reports highlighting strategic moves in oil storage and LNG trade that could influence demand for U.S. exports, including those from the Bakken. Kuwait is looking at expanding its global oil storage capacity, according to a report from Rigzone. The news service reported that this consideration comes amid "unprecedented upheaval in global markets" following a U.S. and Israeli campaign against Iran that began in late-February. Increased strategic storage by major producers can help stabilize global supply but may also reflect expectations of continued volatility. Separately, chemical and energy group INEOS has entered an agreement to supply liquefied natural gas (LNG) to Asia under a deal with Japanese conglomerate Marubeni, Rigzone reported. This marks INEOS' first LNG deliveries to the Asia-Pacific region. For Bakken operators, these developments underscore a complex global backdrop. The geopolitical tensions cited by Rigzone have historically supported...

🌅Afternoon Wire·Jun 3

Global Markets

U.S. Seeks Nuclear Fuel from Weapons Stockpiles; States Sue Over Wind Cancellations

The Trump administration is pursuing the conversion of Cold War-era plutonium into nuclear fuel as part of a push to establish U.S. energy independence and leadership, according to a report from OilPrice.com. The U.S. holds more than 50 tons of plutonium from legacy weapons programs. This move aims to address vulnerabilities in the nuclear fuel supply chain, which is heavily concentrated and partly controlled by Russia. Assistant Secretary for Nuclear Energy Ted Garrish has called used nuclear fuel an "incredible untapped resource," with recycling potentially boosting resource utilization by 95 percent. The administration's strategy seeks to build alternative, domestic nuclear fuel supply chains amid global competition for resources, where Russian and Chinese entities have been aggressively securing uranium assets in Central Asia and Africa. Separately, the administration's cancellation of offshore wind projects is facing legal challenges from multiple states. New York's attorney general sued on Tuesday, June 2, joined by...

🌅Afternoon Wire·Jun 3

Operator News

Oil Prices Rise on Geopolitical Tensions; Renewables Investment Continues

Oil prices climbed on Wednesday as escalating U.S.-Iran tensions and stalled peace talks provided market support, according to Rigzone. While specific price levels were not detailed, the upward movement reflects the continued sensitivity of crude markets to geopolitical risk, a factor that can influence investment and production decisions in North Dakota's Bakken formation. In other energy sector news, major international companies are advancing projects in renewables and alternative fuels. Iberdrola has started up Spain's biggest battery energy storage project, Rigzone reported. The facility has 58 MW of power and 120 MWh of storage capacity, marking a step forward in the company's commitment to energy storage for electrification and renewable integration. Separately, Spanish energy company Repsol has added 200,000 tons of annual capacity for renewable fuel production, Rigzone reported. The company is producing renewable diesel at its Puertollano Industrial Complex, its second plant dedicated exclusively to producing 100 percent renewable fuels....

🌅Afternoon Wire·Jun 3

Pipeline & Infrastructure

Industry Launches AI Safety Initiative Amid Rising Oil Prices

A new AI-powered field safety initiative has been launched by a consortium of energy companies, including two major Bakken operators. According to Rigzone, Enverus teamed up with Continental Resources, BPX Energy, Chord Energy, and Ranger Energy Services to introduce 'LifeSaver'. For Bakken producers, such collaborative safety technology projects are critical for maintaining operational efficiency and reducing downtime in the prolific North Dakota formation. Continental Resources and Chord Energy are significant players in the region, and their participation signals a focus on integrating advanced monitoring and prevention systems into daily field operations. Meanwhile, oil prices were trading higher for a third consecutive session on Wednesday. Rigzone reported that market pessimism is growing over the prospects of a U.S.-Iran deal that could pave the way for a reopening of the Strait of Hormuz, a key global oil transit route. Ole S. Hansen, Head of Commodity Strategy at Saxo Bank, made the comment....

🌅Afternoon Wire·Jun 3

Regulatory

Mideast Tensions Flare, Impacting Global Oil Market Sentiment

Geopolitical tensions in the Middle East escalated Wednesday as Iran struck U.S. allies in the region, according to a report from Rigzone. The news service reported that Kuwait and Bahrain were caught in the crossfire in one of the most serious flare-ups since a ceasefire went into effect in early April. While the conflict is geographically distant from the Williston Basin, such events directly influence the global oil market. Bakken crude, priced against international benchmarks like West Texas Intermediate (WTI) and Brent, is sensitive to shifts in the geopolitical risk premium. Increased tensions in key oil-producing regions often lead to heightened market volatility and can provide underlying price support. For Bakken operators and royalty owners, these external factors underscore the interconnected nature of the energy market. Production economics in North Dakota are ultimately tied to the global price realized for a barrel of oil. Sustained instability, particularly involving major producers...

🌅Afternoon Wire·Jun 3

Production Data

High Prices, Low Rig Count Shape Bakken Production Outlook

North Dakota's oil production outlook for the summer of 2026 is being shaped by a stark contrast: persistently strong global crude prices against a historically low level of drilling activity. The state's active rig count held at 31 on Wednesday, according to live Bakken Wire data, while West Texas Intermediate (WTI) crude surged to $96.37 per barrel, a gain of $2.61. The current rig figure represents a fraction of the basin's peak activity from over a decade ago and indicates a continued focus on capital discipline and efficiency by operators. Historically, the rig count serves as a leading indicator for future production, as new wells must be drilled to offset the steep decline rates typical of Bakken shale wells. A sustained low rig count typically forecasts flat or declining production volumes in the coming months. However, the current price environment provides a significant counterbalance. With WTI above $96 and Brent...

🌅Afternoon Wire·Jun 3