Wednesday, July 1, 2026

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Oil Prices

Oil Prices Dip as Political Pressure, Rising Supply Weigh on Market

Front-month WTI crude oil futures traded at $69.07 per barrel early Wednesday, down 43 cents (-0.62%), while Brent crude fell to $72.26, according to live market data. The Bakken crude price differential to the WTI benchmark widened to -$3.42. The price decline follows a public directive from U.S. President Donald J. Trump to gasoline retailers. In a statement posted on his Truth Social page on Tuesday, Trump ordered U.S. gasoline retailers to cut their prices 'immediately', according to Rigzone. This political pressure adds to existing bearish market fundamentals. Rigzone reported that oil prices fell on Tuesday as shipping through the critical Strait of Hormuz increased and traders anticipated a growing global supply surplus. Industry executives have expressed concern over the impact of unpredictable political statements on market stability. One exploration and production company executive, cited in the latest Dallas Fed Energy Survey, warned that 'Markets can price risk, but they...

☀️Morning Wire·Jul 1

Rig Report

North Dakota Rig Count Holds at 25; Silver Hill Rig Moves in Williams County

North Dakota's active drilling rig count held steady at 25 on Wednesday, according to live data from Bakken Wire. No new rigs were added and none were released over the past 24 hours, though one rig changed location. The sole rig move reported was by Silver Hill Energy Operating, LLC. Its NABORS B27 rig was moved to a new location in Williams County, specifically 157-97-35. The current count of 25 rigs represents a decline from recent historical levels. One week ago, on June 24, 2026, the state reported 27 active rigs, meaning the count has dropped by two rigs over the past seven days. The decline is more pronounced over a longer period; one month ago, on June 1, 2026, the active rig count stood at 29, indicating a net decrease of four rigs over the last 30 days. The Bakken formation, located within the Williston Basin, is North Dakota's...

☀️Morning Wire·Jul 1

Daily Activity

DMR Approves Three New Permits; Phoenix Operating Leads Activity

The North Dakota Department of Mineral Resources (DMR) approved three new drilling permits in its latest daily activity report. Phoenix Operating LLC was the most active, securing two of the three new approvals. The approved permits include one for Heberdev Operating and two for Phoenix Operating LLC. Heberdev's permit, 43075, is for the Little Bit 161-91 18-7-6 4H-TF well located in the NE NW of Section 19-161N-91W in Burke County, within the Northeast Foothills field. Phoenix Operating's permits are both in Williams County's South Meadow field. Permit 43076 is for the Lord 7-6 6HF-LL well at Lot 4, and permit 43077 is for the Fedor 7-6 2HSF well, also at Lot 4. The report also detailed several updates to existing well records. Phoenix Operating LLC had a well released from confidential status. The well, 42506 named T Johnson 32-5-8 2HF in Mountrail County (SE SW 29-158N-91W), is no longer listed...

☀️Morning Wire·Jul 1

Operator News

Hess Midstream Shifts Strategy From Growth Spending to Shareholder Returns

Hess Midstream LP is transitioning its financial strategy from growth spending to prioritizing shareholder returns, according to a report from Seeking Alpha. The shift indicates a potential new phase for one of the Bakken formation's key pipeline and gathering system operators. For Bakken producers, this strategic move suggests that Hess Midstream's major infrastructure build-out may be largely complete. The company operates extensive gas gathering, processing, and crude oil infrastructure in North Dakota, which is critical for moving production from the wellhead to market. The transition from capital expenditure for growth to a focus on returning cash to shareholders often reflects a company's view that its core asset network is built. This could imply a period of stable, optimized operations for the existing Hess Midstream system in the Williston Basin. While the source did not provide specific financial figures or a timeline for the transition, the strategic shift is a notable...

☀️Morning Wire·Jul 1

Global Markets

Global Oil Glut Forecast for 2027, U.S. Bets Billions on Gas Power

A forecasted global oil supply glut in 2027 and a massive U.S. investment in natural gas-fired power generation present a mixed outlook for Bakken producers, according to new industry reports. Goldman Sachs warns that a coming race to rebuild depleted global oil inventories will not prevent a massive supply surplus next year, according to an Oilprice.com report. The investment bank expects a global oil surplus of about 3 million barrels per day (bpd) in 2027. Analyst Samantha Dart noted that while over 1 million bpd of demand will come from global Strategic Petroleum Reserve (SPR) rebuilding, a nearly 2 million bpd surplus would remain. This glut is anticipated as traffic through the Strait of Hormuz moves toward normalization following a U.S.-Iran memorandum of understanding in mid-June. The closure of that chokepoint earlier this year had trapped flows and driven inventories to multi-decade lows. U.S. SPR stocks are at a 1983...

☀️Morning Wire·Jul 1

Global Markets

Global Energy Roundup: Shell Sells Gulf Asset, KKR Launches Korea Renewables

Shell has agreed to sell a 50% stake in the Na Kika oil platform and related Gulf of Mexico assets to Talos Energy and Ridgewood Energy for $1.7 billion, according to an Oilprice.com report. The deepwater platform, a partner asset with BP, is one of the most prolific production hubs in the Gulf and can produce up to 130,000 barrels of crude daily. The sale comes as Shell faces a reserve shortfall, with its reserve life dropping below eight years, significantly lower than peers like Exxon and TotalEnergies, according to the source. Shell's President of Upstream, Peter Costello, stated the Gulf remains a high-value basin and that the company is "actively shaping our portfolio to ensure our Upstream business continues to be resilient and increasingly competitive." In a separate major energy deal, global investment firm KKR and South Korea's SK Inc. are launching the country's largest renewable energy platform, valued...

☀️Morning Wire·Jul 1

Operator News

Global Deals, Iran Talks, Price Warnings Shape Bakken Outlook

International energy deals and geopolitical developments are influencing the global oil market as North Dakota's Bakken operators monitor price impacts. Abu Dhabi National Oil Company (ADNOC) and Italy's Eni have acquired stakes in upstream assets within Argentina's Vaca Muerta shale play, according to Rigzone. The assets are planned to supply feed gas to two floating liquefaction facilities with a combined capacity of 12 million metric tons per annum. Separately, U.S. negotiators have made progress in indirect talks on an Iran deal, Rigzone reported. Senior administration officials stated that Jared Kushner and Steve Witkoff had positive discussions with regional leaders in Qatar, and technical talks with Iran are moving ahead. Any potential agreement that leads to increased Iranian oil exports could add to global supply, applying downward pressure on the benchmark prices that determine Bakken crude revenues. Adding to supply concerns, investment bank Morgan Stanley has warned of a potential oil...

☀️Morning Wire·Jul 1

Production Data

Bakken Well Economics Under Pressure as WTI Dips Below $70

WTI crude oil prices fell to $69.07 per barrel Wednesday, a decline of 43 cents, as the Brent benchmark held at $72.26. According to live data from Bakken Wire, the active rig count in North Dakota remained steady at 25. The current price environment presents a challenging calculus for operators considering new drilling programs in the Bakken formation. A typical new Bakken well carries a capital cost of between $7 million and $8 million to drill and complete. For such an investment to be economic, operators rely on a combination of the estimated ultimate recovery (EUR) of the well and the long-term price they expect to receive for the oil. General industry analysis indicates that a modern Bakken well can have an EUR ranging from 500,000 to over 1 million barrels of oil equivalent over its lifespan. At a WTI price of approximately $69 per barrel, the gross revenue from...

☀️Morning Wire·Jul 1

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Slide Despite Large U.S. Crude Inventory Draw

Front-month oil prices dropped sharply in midday trading on Wednesday, with the primary Bakken crude benchmark falling over two percent despite a significant reported drawdown in U.S. commercial crude stocks. West Texas Intermediate (WTI) crude was trading at $68.06 per barrel, down $1.44 (-2.07%), according to live price data. The international Brent benchmark fell to $71.10, a drop of $1.85 (-2.54%). Bakken crude at the wellhead traded at a discount of $3.42 per barrel to WTI. Natural gas prices also softened, down $0.05 to $3.23 per MMBtu. The price decline occurred despite supportive inventory data from the U.S. Energy Information Administration (EIA). According to a report from OilPrice.com, the EIA stated U.S. commercial crude oil inventories decreased by 3.8 million barrels for the week ending June 26. This draw brings total stockpiles to 408.4 million barrels, which is 7% below the five-year average for this time of year. Market focus,...

🔆Midday Wire·Jul 1

Global Markets

Global Oil Prices Fall on Rising Supply, Strait of Hormuz Shipping

Global crude oil prices fell Tuesday as rising supply and increased shipping activity pressured the market, according to a report from Rigzone. The decline was attributed to a growing global supply surplus and increased tanker traffic through the critical Strait of Hormuz. For Bakken Shale operators in North Dakota, lower benchmark prices directly squeeze cash flow and complicate drilling economics. The Bakken formation is a price-sensitive region, and sustained price weakness can lead operators to defer new well completions or reduce activity. While the report did not specify the magnitude of the price drop, any downward move challenges the profitability margins for producers in the play. The mention of increased shipping through the Strait of Hormuz, a vital chokepoint for global oil shipments, suggests a potential easing of previous geopolitical tensions that may have constrained supply. This development, combined with anticipation of a supply surplus, points to a well-supplied global...

🔆Midday Wire·Jul 1

Global Markets

Global Energy Shifts: Uranium Revival, Iran Tensions, German Renewables Hit Record

Plans are underway to explore and potentially redevelop two historic uranium deposits in northern Italy that have been dormant since the 1980s, according to OilPrice.com. A firm called Reveille Resources is preparing to list on London's Aquis exchange this week, with an initial focus on the Novazza and Val Vedello deposits in Lombardy. The company stated that renewed European interest in nuclear energy, particularly small modular reactors (SMRs), is driving a strategic focus on securing domestic and Western-aligned sources of critical minerals like uranium. This move reflects Europe's broader push to strengthen energy security and reduce reliance on imported energy, a theme with implications for global commodity flows and long-term energy planning. The sites were originally explored in the 1950s but suspended after the Chornobyl disaster. Meanwhile, U.S. Vice President JD Vance has again signaled that the White House is prepared to use force against Iran if diplomacy fails, OilPrice.com...

🔆Midday Wire·Jul 1

Operator News

JERA Forms Global Trading Arm, Shell Sees LNG Trade Stable Amid Supply Shifts

Japan's largest LNG buyer, JERA, announced the creation of a standalone global trading subsidiary on Wednesday, a move signaling major buyers are adapting to volatile energy markets. According to OilPrice.com, the new company, JERA Global Energy Solutions (JERA GES), will be a vertically integrated LNG firm headquartered in Singapore, managing JERA's LNG, upstream, and low-carbon fuel businesses. The restructuring aims to help the utility giant quickly respond to market needs while prioritizing Japan's energy security. JERA GES will focus on developing a stable, diversified long-term LNG portfolio and advancing lower-carbon fuels like ammonia and hydrogen, according to the source. This follows JERA's recent 20-year supply deal with Malaysia's Petronas for 2 million tons of LNG annually starting in 2028. The announcement comes as global LNG markets face disarray, with supply shifts impacting global trade flows. In a separate report, Rigzone noted that Shell believes global LNG trade in 2026 could...

🔆Midday Wire·Jul 1

Pipeline & Infrastructure

BP Shuffles Leadership as Analyst Notes Oil's 'Softening Trend'

BP PLC announced a leadership shuffle Wednesday with the retirement of newly appointed deputy chief executive Carol Howle, according to Rigzone. The company named two new executive vice presidents from within its ranks. As a major shipper on the Dakota Access Pipeline (DAPL), a key conduit for Bakken crude to reach Gulf Coast markets, leadership stability at integrated majors can influence midstream strategy and crude offtake agreements vital to North Dakota producers. Separately, an analyst noted a continued "softening trend" in oil markets, Rigzone reported. Standard Chartered Bank Energy Research Head Emily Ashford stated the trend had continued "as the return of easy barrels outpaces demand recovery." This price environment pressures the economics of Bakken production, where breakeven costs are higher than in some other global basins, potentially affecting future drilling budgets and well completion schedules. In other international pipeline-related news, ADNOC and Eni acquired stakes in upstream assets within...

🔆Midday Wire·Jul 1

Regulatory

Progress on Iran Deal, Glut Warning Shape Midday Market View

Progress in indirect talks aimed at reviving a nuclear deal with Iran was reported by U.S. officials on Wednesday, according to Rigzone. A senior administration official stated that U.S. negotiators Jared Kushner and Steve Witkoff held positive discussions with regional leaders in Qatar and that technical talks with Iran are moving ahead. Any potential agreement that leads to a lifting of sanctions on Iranian oil exports would increase global supply, posing a headwind for crude prices. For Bakken producers, who compete in a global market, additional barrels from Iran could pressure the differentials for North Dakota Light Sweet crude. Meanwhile, a bearish fundamental warning emerged from Wall Street. Investment bank Morgan Stanley cut its oil price forecasts for the second time in approximately two weeks, Rigzone reported Tuesday. The bank cited concerns over a potential oil glut, reflecting worries about robust non-OPEC supply growth outpacing demand. These dual developments create...

🔆Midday Wire·Jul 1

Production Data

Bakken Rig Count Holds at 25 as Oil Prices Retreat

The number of active drilling rigs in North Dakota held firm at 25 on Wednesday, a key indicator for near-term oil production levels in the Bakken formation. This count, provided by live Bakken Wire data, comes amid a sharp midday decline in global crude oil prices. West Texas Intermediate (WTI) crude was trading at $68.06 per barrel, down $1.44 or 2.07% from the previous settlement. The international Brent benchmark fell to $71.10, a drop of $1.85 or 2.54%. The price for Bakken crude at the wellhead is effectively discounted further, with the Bakken differential reported at -$3.42 versus WTI. Natural gas was priced at $3.23 per MMBtu. The steady rig count suggests operators are maintaining a baseline level of drilling activity despite price volatility. Historically, the active rig count is a leading indicator for future oil production, as new wells drilled today will typically begin contributing to output several months...

🔆Midday Wire·Jul 1

Workforce & Community

Bakken Rig Count Holds at 25 Amid Midday Price Slide

The active rig count in North Dakota held steady at 25 on Wednesday, a key indicator of sustained but muted drilling activity in the Bakken formation. This stability comes alongside a midday retreat in oil prices, with West Texas Intermediate (WTI) crude trading at $68.06 per barrel, down $1.44 for the day. The current rig level, a fraction of the historic peaks seen during the previous boom cycles, points to a controlled pace of operations that shapes workforce and community dynamics across western North Dakota. Employment in oilfield services, trucking, and related support industries typically correlates closely with the number of rigs actively drilling new wells. For local communities, a stable rig count near current levels suggests a steady demand for housing and services without the intense strain experienced during rapid expansion periods. Housing markets in cities like Williston, Dickinson, and Watford City are likely experiencing equilibrium, avoiding the severe...

🔆Midday Wire·Jul 1

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Slide Over 2% on Glut Fears, Narrowing Bakken Differential

Oil prices extended losses in Wednesday trading, with both major benchmarks dropping over two percent on mounting concerns about a global supply glut. West Texas Intermediate (WTI) crude for August delivery fell $1.39, or 2.0 percent, to settle at $68.11 per barrel. The global benchmark, Brent crude, dropped $1.76, or 2.41 percent, to $71.19, according to live price data. The day's sell-off was driven by recovering tanker traffic through the critical Strait of Hormuz and rising global supplies, which reinforced expectations of an oversupplied market, Rigzone reported. The easing of logistical disruptions contributed to the bearish sentiment. For Bakken producers, the price of crude at the wellhead closely tracks WTI, minus a regional price differential. That differential narrowed slightly Wednesday, with Bakken crude priced at a $3.42 per barrel discount to WTI. This puts the implied price for Bakken crude at approximately $64.69 per barrel. The price pressure comes amid...

🌅Afternoon Wire·Jul 1

Rig Report

ND Rig Count Rises to 26 as Whiting, Oasis Add Drills

The number of active drilling rigs in North Dakota increased to 26 on Wednesday, July 1, 2026, a net gain of two rigs from the previous day, according to live rig data from Bakken Wire. This uptick follows a period of declining activity in the Williston Basin. Two operators brought new drilling rigs online. Whiting Oil and Gas Corporation deployed the rig NOBLE 2 to a location in McKenzie County (151-102-32). Separately, Oasis Petroleum North America LLC started operations with the rig NABORS B26 at a site in Mountrail County (157-93-13). No rigs were taken out of service on Wednesday. One rig changed locations within the play. Silver Hill Energy Operating, LLC moved its rig, NABORS B27, to a new well site in Williams County (157-97-35). The day's activity reverses a recent downward trend in the state's rig count. One week ago, on June 24, 2026, North Dakota reported 27...

🌅Afternoon Wire·Jul 1

Global Markets

Geopolitical Shifts in Russian Blocs Could Impact Global Oil Markets

Growing fractures within Russia's key security and economic alliances could introduce new uncertainty into global energy markets, with potential implications for the price of Bakken crude. According to a report from OilPrice.com, Russia's Collective Security Treaty Organization (CSTO) and the Eurasian Economic Union (EAEU) are showing significant signs of weakness as the conflict in Ukraine continues. The CSTO, a security pact often compared to NATO, appears to be fracturing over the war. The report states that following a Ukrainian ultimatum to Belarus, CSTO members Kazakhstan and Kyrgyzstan have "clearly indicated they have no intention of getting dragged into the Russia-Ukraine war." An unnamed Kyrgyz Foreign Ministry official was quoted saying any collective response would require a formal UN resolution, which would likely be vetoed by Western powers. This renders the alliance, in the report's assessment, "merely an alliance on paper." Simultaneously, the Russian-led EAEU trade bloc is facing a "credibility...

🌅Afternoon Wire·Jul 1

Global Markets

Global Energy Shifts Impact Commodity Prices, Hydrogen Tech Advances

Brent crude oil posted its worst monthly decline since March 2020, falling roughly 21% in June, according to an OilPrice.com report. For the quarter, Brent lost close to $45 a barrel, its largest quarterly drop since the 2008 financial crisis. West Texas Intermediate (WTI) shed roughly $31, its steepest quarterly decline since the pandemic gutted demand in 2020. The collapse is attributed to returning supply, specifically the reopening of the Strait of Hormuz following a U.S.-Iran memorandum of understanding. Tanker traffic through the critical waterway has increased, bringing barrels locked out of the market for months back online. Meanwhile, gold prices have also plummeted, but for different reasons. The metal fell to $3,983.07 an ounce on Wednesday, its lowest level since November, and sank roughly 14% in the second quarter. OilPrice.com reports the decline is driven by a hawkish Federal Reserve, with new Chair Kevin Warsh setting a tone for...

🌅Afternoon Wire·Jul 1

Operator News

KKR's $4.2B Clean Energy Buy, Saudi Spot Sales, North Sea Swaps

Global investment firm KKR has made the largest clean energy investment in its history, agreeing to acquire EDF Power Solutions North America for $4.2 billion, according to OilPrice.com. The deal, announced July 1, gives KKR immediate control of a portfolio with over 5.6 gigawatts of operating wind, solar, and battery storage assets across North America. KKR stated the move is aimed at capitalizing on soaring power demand from AI data centers and other sources. The acquisition instantly positions KKR as one of the largest owners of renewable generating assets in North America. KKR will finance the transaction through its global infrastructure strategy and has deployed over $26 billion globally in renewable energy and transition strategies to date. Separately, KKR and South Korea’s SK Inc. have launched that country's largest integrated renewable energy platform, starting with 1.7 GW of assets, OilPrice.com reported. In other market news, Saudi Arabia is taking the...

🌅Afternoon Wire·Jul 1

Pipeline & Infrastructure

Global LNG, Trading Deals, Leadership Shifts Impact Bakken Outlook

Global liquefied natural gas (LNG) trade in 2026 could match 2025 levels despite supply disruptions in the Middle East, according to a Shell report. The energy major cited the ramp-up of new liquefaction facilities in North America, improved performance at existing plants, and slower Asian imports as factors partially offsetting the Middle East impact, Rigzone reported July 1. For Bakken producers, sustained global LNG demand supports the long-term market for associated natural gas produced alongside crude oil. North Dakota's gas capture and pipeline infrastructure development is crucial for connecting the basin to these growing North American LNG export terminals. In a separate major trading development, Italian oil company Eni SpA and commodity merchant Mercuria Energy Group Ltd. have agreed to join forces in commodity trading, Rigzone reported. The partnership between a major integrated energy company and a leading trader could influence global oil and gas market liquidity and pricing benchmarks,...

🌅Afternoon Wire·Jul 1

Regulatory

Oil Softens Amid Supply Glut, Global LNG Deal Advances

Oil markets continued a softening trend on Wednesday as increased global supply outpaced recovering demand, according to analysis from Standard Chartered Bank. Emily Ashford, Head of Energy Research at the bank, noted the trend persisted "as the return of easy barrels outpaces demand recovery," Rigzone reported. The price pressure underscores a challenging environment for Bakken shale operators, who must navigate efficiency gains to maintain profitability in a well-supplied market. North Dakota's oil production, which has stabilized near 1.2 million barrels per day, faces competitive pressure from both OPEC+ and other non-OPEC suppliers contributing to the global "easy barrels" cited by analysts. In a separate global development highlighting the race to secure future gas supply, a consortium including Abu Dhabi National Oil Company (ADNOC) and Italy's Eni acquired stakes in upstream assets within Argentina's Vaca Muerta shale formation, Rigzone reported. The assets are planned to supply feed gas to two floating...

🌅Afternoon Wire·Jul 1

Production Data

Bakken Rig Count Steady at 26 as Oil Prices Retreat

The number of active drilling rigs in North Dakota remained unchanged at 26 on Wednesday, July 1, 2026, even as crude oil prices fell sharply in midday trading. The steady rig count suggests operators are maintaining a disciplined focus on their most productive core Bakken acreage. The benchmark West Texas Intermediate (WTI) crude price was $68.11 per barrel, down $1.39 or 2% for the day. The international Brent crude benchmark traded at $71.19, down $1.76 or 2.41%. The price for Bakken crude at the wellhead is typically discounted against WTI; the live data showed a differential of negative $3.42 per barrel. Natural gas was priced at $3.21 per MMBtu. Historically, the rig count is a leading indicator for future oil production in North Dakota, with a lag of several months between drilling activity and new wells contributing to output. A stable rig count in the mid-20s, as seen recently, typically...

🌅Afternoon Wire·Jul 1