Thursday, June 4, 2026

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Oil Prices

Oil Prices Drop Sharply as Chinese Demand Weakens

Front-month West Texas Intermediate crude oil futures fell sharply on Thursday, trading down $3.02, or 3.15 percent, to $93 per barrel, according to live market data. Brent crude, the international benchmark, followed suit, declining $3.09 to $94.72 per barrel. The sharp decline was driven by significant weakening in demand from China, the world's top crude importer, according to a report from OilPrice.com. The premium for Iranian Light crude has slipped into a discount for the first time in two months, trading between $0.50 and $1 per barrel below ICE Brent for June delivery into Shandong province. Just a month ago, the same cargoes commanded premiums of $1–2 per barrel. The price for Russia's popular ESPO crude grade has also softened, with its premium over Brent falling to $3–4 per barrel for June, down from $4–5 per barrel in May, OilPrice.com reported. This shift is attributed to waning demand from China's...

☀️Morning Wire·Jun 4

Rig Report

North Dakota Rig Count Holds at 31 for Third Consecutive Day

North Dakota's active drilling rig count was unchanged at 31 for Thursday, June 4, according to live rig data from Bakken Wire. The count showed no day-over-day movement, with zero rigs added, removed, or relocated since the previous report. The current level continues a period of sustained activity in the Williston Basin. The rig count has increased by three rigs over the past week, rising from 28 on May 28. More significantly, the current fleet represents a substantial increase of eight rigs compared to one month ago, when 23 rigs were active on May 5. The stability at the 31-rig level suggests operators are maintaining their current development plans despite fluctuating commodity prices. A rig count in the low 30s is consistent with a focus on drilling high-quality, core Bakken and Three Forks locations to maintain base production. Historically, rig counts are a leading indicator of future oil production, with...

☀️Morning Wire·Jun 4

Daily Activity

XTO Energy Files Six New Dunn County Permits, DMR Approves Five Renewals

XTO Energy Inc. was the most active operator in Wednesday's North Dakota Department of Mineral Resources filings, securing six new drilling permits for a single pad in Dunn County. All permits are for the "GHOSTRIDER FEDERAL" project in Section 6-148N-96W, according to the DMR Daily Activity Report. The approved permits, numbered 42995 through 43000, are for wells designated 34X-6H, 34X-6DXA, 34X-6EXH, 34X-6A, 34X-6F, and 34X-6B. The filings list the field as 'CONFIDENTIAL'. Five permit renewals were also approved, indicating continued development planning by other operators. Lime Rock Resources III-A, L.P. renewed three permits for the "HARLAN REBSOM" project in Section 35-144N-95W, Dunn County, the report shows. The filings note the well locations are "outside of spacing unit" for the Murphy Creek field. Marathon Oil Company secured a renewal for its "SOPHIA USA 11-14TFH" well in Section 15-147N-94W, Dunn County, listed as a wildcat well in a 'CONFIDENTIAL' field. Separately, Burlington...

☀️Morning Wire·Jun 4

Operator News

Chevron Faces Angola Stake Sale Dispute Amid Global Portfolio Shift

Chevron's planned sale of its interests in two offshore Angola oil and gas licenses to Energean is facing competition, according to a report from Rigzone. The news service reported that Etu Energias is exercising its pre-emption right under the agreement, potentially disrupting the deal. For Bakken operators and watchers of North Dakota's premier oil play, such international portfolio moves by global majors like Chevron are closely monitored for their potential impact on domestic spending. While the specific financial terms of the Angola transaction were not disclosed, asset sales are a key tool for large companies to manage their global portfolio and reallocate capital. A successful sale would free up capital that could theoretically be deployed to other regions, including U.S. shale basins like the Bakken. Conversely, a protracted dispute or failed sale could tie up resources. Chevron is a significant operator in the Williston Basin, and its investment level in...

☀️Morning Wire·Jun 4

Global Markets

Global Energy Turmoil Spurs LNG Demand, Operational Shifts

Global energy markets remain in upheaval following the U.S. and Israeli campaign against Iran that began in late-February, according to Rigzone. The conflict has trapped Middle Eastern LNG supply from Qatar and the UAE behind the Strait of Hormuz, creating supply shocks and new demand dynamics with potential implications for North Dakota's energy sector. Pakistan is urgently seeking spot market liquefied natural gas (LNG) to address a summer power crisis, a move driven by the loss of its affordable, fixed-term supply from Qatar. OilPrice.com reported that Pakistan has issued its fourth LNG tender in two months, seeking 1 million tons, as it grapples with widespread outages. The shutdown of Qatari LNG exports due to the war has forced the cash-strapped nation into the expensive spot market for the first time in nearly three years, despite soaring Asian LNG prices. This scramble for replacement gas highlights a tightened global gas market....

☀️Morning Wire·Jun 4

Global Markets

House Votes on Iran War Powers, Iraq Revives Kurdistan Oil

The U.S. House of Representatives voted 215-208 on Wednesday to direct President Donald Trump to withdraw U.S. forces from hostilities with Iran, according to OilPrice.com. The resolution, invoking the 1973 War Powers Act, gives Trump 30 days to comply unless he challenges it, which the White House has signaled it will do. The vote represents the most significant congressional pushback on Operation Epic Fury since the war began Feb. 28, with four Republicans crossing the aisle to support it. The conflict has now stretched past 95 days, and Iran has largely kept the Strait of Hormuz disrupted for the duration, according to OilPrice.com. The strait carries roughly 20% of the world's oil supply. The economic toll, including U.S. gas prices averaging close to $5 per gallon nationwide, has become a central argument for critics. Saudi Aramco CEO Amin Nasser warned earlier this month that if the strait stays blocked beyond...

☀️Morning Wire·Jun 4

Operator News

Global Supply, Security Headlines Dominate Operator News

Global energy supply chains and geopolitical stability are in focus Thursday with developments from Australia, industry analysts, and the Middle East, according to wire service reports. While not directly involving the Bakken, these events underscore the interconnected factors that influence the operating environment for North Dakota producers. The Australian government has secured an additional 40 million liters of diesel for Queensland and is pursuing further negotiations with industry for fuel and fertilizer, Rigzone reported, citing a statement from Prime Minister Anthony Albanese. This move highlights ongoing global efforts to secure critical energy and agricultural inputs, which can have ripple effects on commodity prices and equipment logistics worldwide. Separately, energy research firm Wood Mackenzie has announced its "Most Admired Explorer" award, determined by votes from exploration leaders across the industry and supported by independent quantitative analysis, Rigzone reported. The annual recognition spotlights the strategic importance of exploration success, a foundational element...

☀️Morning Wire·Jun 4

Pipeline & Infrastructure

Oil Prices Rise on Geopolitical Tension as Energy Transition Advances

Oil prices moved higher Wednesday as escalating tensions between the United States and Iran stalled peace talks, according to Rigzone. This increase in crude benchmarks provides a supportive price environment for Bakken shale production, though it also introduces market volatility tied to geopolitical risk in a key oil-producing region. In parallel developments in the global energy sector, two European energy giants announced significant steps in the energy transition. Spanish utility 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, which the company sees as a key pillar for electrification and renewable integration. Separately, Spanish energy company Repsol has added 200,000 tons of annual production capacity for renewable fuels, according to Rigzone. The new capacity is located at its Puertollano Industrial Complex and represents its second plant dedicated exclusively to producing 100% renewable fuels. For...

☀️Morning Wire·Jun 4

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Slide Sharply Despite Large U.S. Crude Stock Draw

Oil prices fell sharply in midday trading Thursday, with both major benchmarks dropping over $3 per barrel despite a significant drawdown in U.S. commercial crude inventories. West Texas Intermediate crude for July delivery was trading at $92.85 per barrel, down $3.17 or 3.3% for the session, according to live price data. The global Brent benchmark fell to $94.98, a decline of $2.83 or 2.89%. The price drop pressured Bakken crude, which was trading at a differential of $3.42 below WTI. The decline comes even after a bullish weekly inventory report from the U.S. Energy Information Administration. Rigzone reported that U.S. commercial crude oil stocks, excluding the Strategic Petroleum Reserve, fell by 8 million barrels for the week ending May 29. Total inventories stood at 433.7 million barrels, according to the EIA's weekly petroleum status report. The substantial stock draw, which typically supports higher prices, was overshadowed by broader macroeconomic concerns...

🔆Midday Wire·Jun 4

Operator News

Etu Energias Challenges Energean's Purchase of Chevron Angola Assets

Energean's agreement to acquire Chevron's interests in two producing oil and gas licenses offshore Angola is facing a competitive challenge, according to a report from Rigzone. The news service reported on June 4, 2026, that Etu Energias is exercising its pre-emption right in the deal. This development, while occurring in Angola, underscores the highly competitive nature of global upstream asset transactions. For Bakken operators, it serves as a reminder that acquisition opportunities, whether international or domestic, can attract immediate counter-offers from partners or other interested parties. Pre-emption rights are a common feature in joint operating agreements, giving existing partners the first option to match any sale offer. The competitive landscape for mergers and acquisitions (M&A) is relevant to the Bakken as operators in North Dakota's premier oil field continually evaluate their portfolios. Companies with positions in the Williston Basin may be looking to acquire additional drilling locations or divest non-core...

🔆Midday Wire·Jun 4

Global Markets

U.S. Ukraine Aid Advances as Russia's Oil Output Falls, Tightening Global Supply

The U.S. House of Representatives voted on June 3 to advance a major military aid package for Ukraine, a move that could lead to strengthened sanctions on Russia and has immediate implications for global oil markets, according to OilPrice.com. The procedural vote passed 218-204, clearing the way for a final vote on the Ukraine Support Act on August 7. The bill, introduced by Representative Gregory Meeks (D-N.Y.), would provide $8 billion in military financing loans and impose additional sanctions on Russia. Concurrently, Russia has publicly admitted its crude oil production has declined since the start of 2026, the first such acknowledgement from Moscow. Russia's Deputy Prime Minister Alexander Novak cited unscheduled repairs and maintenance at a number of refineries as the cause, according to a separate OilPrice.com report. Industry analysts view this as a direct result of intensified Ukrainian drone strikes on Russian refining and export infrastructure. These dual developments...

🔆Midday Wire·Jun 4

Global Markets

Global Energy Roundup: Rare Earths Push, Gas Demand Rise, Saudi Mega-Project

A strategic push for non-Chinese rare earth materials is accelerating in North America ahead of a key Pentagon deadline, according to an OilPrice.com report. REalloys (NASDAQ: ALOY) has invested $20.6 million to secure exclusive preferred rights to up to 80% of the expanded production capacity at the Saskatchewan Research Council’s rare earth processing facility in Saskatoon. The company says this secures commercial-scale output of neodymium-praseodymium (NdPr), dysprosium, and terbium that "no other Western company has secured at this scale." Engineering is underway for a REalloys-funded heavy rare earth metallization facility at the site, with commissioning on track for the Pentagon’s January 2027 ban on Chinese-origin materials. This supply chain development is critical as the U.S. military seeks to replenish depleted inventories. A recent analysis cited by OilPrice.com estimates the U.S. has used roughly 45% of its Precision Strike Missile inventory, nearly half of its THAAD interceptors, about 30% of its...

🔆Midday Wire·Jun 4

Operator News

Delfin, TGS, Avangrid Secure Major Project Financing, Contracts

Delfin Midstream Inc. announced a $5 billion final investment decision to launch the United States' first floating liquefied natural gas (FLNG) project on the Gulf Coast, according to Rigzone. The project represents a major new outlet for domestic natural gas production. In international shale development, a consortium of lenders including Citigroup, Santander, and JPMorgan Chase is working on a roughly $1 billion finance package for a project by TGS in Argentina's Vaca Muerta shale formation, Rigzone reported, citing people familiar with the matter. The Vaca Muerta is a major shale basin often compared to the Bakken and Eagle Ford in terms of its resource potential. In the renewable power sector, Avangrid Inc. has secured a new contract to supply power from a 140-MWdc solar project to Microsoft, Rigzone reported. The Bluebird project in Klickitat County, Washington, is expected to begin commercial operation in 2028 and is the fourth Avangrid project...

🔆Midday Wire·Jun 4

Pipeline & Infrastructure

House Passes License to Drill Act; Global Energy News Roundup

The U.S. House of Representatives passed the License to Drill Act on Thursday, a legislative move aimed at streamlining federal energy permitting, according to Rigzone. The bill must still pass the Senate and be signed by President Donald Trump to become law. For Bakken operators, federal permitting is often less directly impactful than state-level processes, as most drilling occurs on private or state land in North Dakota. However, any federal policy changes affecting infrastructure or access to federal minerals in the Western part of the state could influence overall basin development. The bill's progress will be watched for its potential to alter the regulatory landscape for the energy industry nationwide. In international news, Australian Prime Minister Anthony Albanese announced the government has secured an additional 40 million liters of diesel for Queensland, Rigzone reported. The Australian government is also pursuing further negotiations with industry for fuel and fertilizer supplies. While...

🔆Midday Wire·Jun 4

Regulatory

Midday Regulatory Roundup: Geopolitical Truce May Ease Global Oil Market Pressure

A reported truce agreement between Israel and Lebanon, contingent on Hezbollah halting attacks, could contribute to stabilizing global oil markets, according to a midday regulatory and news roundup. Rigzone reported the White House statement that the agreement was based on 'a complete cessation' of attacks by the Iran-backed militia. While not a direct regulatory action on North Dakota producers, such geopolitical developments are closely monitored by Bakken operators for their impact on global crude oil prices. Reduced tension in key oil-producing regions can alleviate upward pressure on benchmark prices, which directly affect the revenue and planning for wells in the Williston Basin. The Bakken formation's economic viability is tied to the differential between its local crude price and global benchmarks like West Texas Intermediate. Events that calm international markets often narrow that differential, improving netbacks for producers. Stable or lower global prices can also influence state tax revenue projections and...

🔆Midday Wire·Jun 4

Production Data

Bakken Rig Count Holds at 31 as Oil Prices Retreat Sharply

North Dakota's active drilling rig count held steady at 31 as of Thursday, June 4, 2026, according to live Bakken Wire data. The stability in rigs comes amid a sharp midday sell-off in crude oil markets, with West Texas Intermediate (WTI) trading at $92.85 per barrel, down $3.17 (-3.3%) on the day. The current rig count of 31 remains near the lowest levels seen in the Bakken play over the last decade. Historically, the number of active drilling rigs is a leading indicator of future oil production, as new wells must be drilled and completed to offset the steep decline rates typical of shale basins. The sustained low rig count suggests that operators are maintaining capital discipline and are not significantly accelerating development plans despite the current price environment, even with the Bakken price differential narrowing to -$3.42 versus WTI. The midday price plunge saw Brent crude fall to $94.98,...

🔆Midday Wire·Jun 4

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Drop Sharply Despite Large U.S. Inventory Draw

Front-month West Texas Intermediate crude futures fell sharply on Thursday, dropping $3.02 to settle at $93 per barrel, a decline of 3.15%. The global benchmark Brent crude also fell, losing $2.57 to $95.24 per barrel, according to live market data. The sell-off occurred despite a significant weekly drawdown from U.S. commercial crude inventories. The Energy Information Administration's latest weekly report showed stocks, excluding the Strategic Petroleum Reserve, fell by 8 million barrels to 433.7 million barrels for the week ending May 29, Rigzone reported. The price drop widened the discount for Bakken crude at the wellhead. The Bakken differential versus WTI was quoted at -$3.42 on Thursday. This means Bakken producers are realizing prices approximately $3.42 per barrel below the WTI benchmark, or roughly $89.58 per barrel before further transportation costs. In contrast to crude, natural gas prices saw a gain. The front-month contract rose $0.14 to $3.35 per MMBtu...

🌅Afternoon Wire·Jun 4

Rig Report

North Dakota Rig Count Drops to 27 with Four Rigs Released

The number of active drilling rigs in North Dakota fell to 27 on Thursday, June 4, as four rigs were released by operators. No new rigs were added and none moved locations, according to live rig data. Four rigs were removed from operation. In Divide County, Koda Resources Operating, LLC released the STONEHAM 17 rig from location 160-102-13, and Hunt Oil Company released the T&S DRILLING 1 rig from 160-100-6. In McKenzie County, Phoenix Operating LLC released the PATTERSON 280 rig from 149-102-18, and Whiting Oil and Gas Corporation released the NOBLE 4 rig from 151-102-33. The current count of 27 rigs represents a decrease of one from the total of 28 reported one week ago on May 28. However, activity remains higher than levels seen a month ago, showing an increase of four rigs from the 23 active on May 5. The rig count is a closely watched indicator...

🌅Afternoon Wire·Jun 4

Operator News

Chevron Angola Asset Sale Faces Pre-emption Challenge

Chevron's planned sale of its interests in two producing offshore Angola licenses is facing competition, according to a report from Rigzone. The news service reported that Etu Energias is exercising its pre-emption right to challenge Energean's agreement to acquire the stakes. The development underscores the active global portfolio management undertaken by major international oil companies like Chevron, which is also a significant operator in North Dakota's Bakken formation. While the Angola transaction is geographically distant, such asset sales can influence a company's broader capital allocation and strategic focus. For Bakken stakeholders, the move is a reminder that operators are constantly evaluating and optimizing their worldwide asset portfolios. Decisions to divest non-core international assets can sometimes signal a reallocation of capital and managerial attention toward key strategic regions, which for Chevron includes the prolific Permian Basin and its Bakken position. The exercise of a pre-emption right by a joint venture partner,...

🌅Afternoon Wire·Jun 4

Global Markets

Global Energy Shifts: Brazil Biofuel Test, US Battery Push, Venezuela Debt Risk

Brazil has launched the world's first ethanol-powered engine designed specifically for electricity generation, according to OilPrice.com. The pilot project at the Suape II power plant in Pernambuco is a partnership between Brazilian energy company Suape Energia and Finnish technology firm Wärtsilä. The engine will run on sugarcane-derived ethanol, testing the fuel's viability for providing dispatchable grid power. Brazil, as the world's second-largest ethanol producer behind the U.S., sees this as a step toward greater energy autonomy. This innovation coincides with a reported U.S. proposal for a 25% tariff on Brazilian ethanol, announced June 1, highlighting global biofuels trade tensions that can influence agricultural and energy markets relevant to North Dakota. In the United States, a new prismatic battery cell production line has opened at the Department of Energy's Grid Storage Launchpad in Washington state, OilPrice.com reported. Operated by the Pacific Northwest National Laboratory (PNNL), the facility is designed to help...

🌅Afternoon Wire·Jun 4

Operator News

Oil Prices Fall on Iran Truce Hopes as Export Collapse Tightens Market

Oil prices retreated Thursday as traders bet the United States and Iran are nearing a deal, according to Rigzone. The market pullback comes amid a severe collapse in Iranian oil exports, which tightened to a six-year low in May. Iran's exports of crude oil and condensate fell to just 209,000 barrels per day (bpd) in May, down from 1.34 million bpd in April, according to shipping data from Vortexa cited by OilPrice.com. Kpler estimated May exports slightly higher at 260,000 bpd, still the lowest level since the "maximum pressure" campaign of 2019-2020. The decline is due to an ongoing U.S. naval blockade that has choked off shipments and left tens of millions of barrels stranded at sea. Roughly 67 million barrels of Iranian crude and condensate remain stranded inside the Gulf and Gulf of Oman, Kpler estimates show. The problem for Tehran is compounded by cooling Chinese demand; Chinese imports...

🌅Afternoon Wire·Jun 4

Pipeline & Infrastructure

LNG, Argentina Financing, Microsoft Power Deal Highlight Energy Infrastructure Moves

Delfin Midstream announced a $5 billion investment to launch the United States' first floating liquefied natural gas (FLNG) facility on the Gulf Coast, according to Rigzone. The project represents a significant new outlet for domestic natural gas, which could indirectly influence pricing and demand for associated gas produced in the Bakken formation. In international shale financing, a group of lenders including Citigroup, Santander, and JPMorgan are working on a roughly $1 billion finance package for a project by TGS in Argentina's Vaca Muerta shale formation, Rigzone reported, citing people familiar with the matter. Increased investment and development in the Vaca Muerta, a major shale play, could heighten global competition for capital and market share with U.S. shale basins like the Bakken. Separately, Avangrid has secured a new contract to power Microsoft from its 140-MWdc Bluebird solar project in Klickitat County, Washington, Rigzone reported. The project is expected to start commercial...

🌅Afternoon Wire·Jun 4

Regulatory

Global Fuel, Security Developments Hold Market Implications for Bakken

Global regulatory and geopolitical developments reported Thursday highlight factors that can influence the operating environment for Bakken producers, from fuel supply chains to international market stability. In Australia, the government is pursuing further negotiations with industry for fuel and fertilizer, according to Rigzone. The report noted that Prime Minister Albanese announced an additional 40 million liters of diesel had been secured for the state of Queensland. While a domestic Australian issue, such government interventions in fuel markets underscore the global importance of diesel supply for industrial and transportation sectors, which is a key cost factor for oilfield operations worldwide, including in the Williston Basin. Separately, the White House stated that a truce agreement between Israel and Lebanon was contingent on 'a complete cessation' of attacks by the Iran-backed Hezbollah militia, Rigzone reported. Any escalation or de-escalation of conflict in the oil-rich Middle East can have immediate impacts on global crude...

🌅Afternoon Wire·Jun 4

Production Data

Bakken Rig Count Holds at 27 as Oil Prices Retreat from Recent Highs

The number of active drilling rigs in North Dakota held steady at 27 on Thursday, a level suggesting a continued cautious but stable operational environment in the Bakken formation. The rig count is a closely watched leading indicator for future oil production. The steady rig activity comes amid a significant daily pullback in oil prices. West Texas Intermediate (WTI) crude traded at $93 per barrel, down $3.02 or 3.15% for the day. The international Brent benchmark was at $95.24, down $2.57. The Bakken crude differential—the discount at which local crude trades versus WTI—was $3.42, putting Bakken barrel prices near $89.58. Historically, the rig count in North Dakota has shown a strong correlation with production trends several months later. A sustained increase in rigs typically leads to increased well completions and a subsequent rise in output, while a declining count often foreshadows a production plateau or decline. The current count of...

🌅Afternoon Wire·Jun 4