Thursday, July 2, 2026

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Oil Prices

Oil Prices Slide as Hormuz Reopening Floods Market

Oil prices extended losses in early trading Thursday, with West Texas Intermediate (WTI) crude falling nearly 2% to trade at $67.27 per barrel. The decline was driven by a rapid resurgence of crude exports from the Persian Gulf following the tentative reopening of the Strait of Hormuz, according to market reports. The key global benchmark, Brent crude, was down 1.66% to $70.38. In the Bakken, the local crude price differential to WTI was reported at -$3.42 per barrel. The price drop is directly linked to a surge in Middle Eastern exports. According to a report from OilPrice.com citing Reuters data, Saudi Arabia has rushed at least five supertankers loaded with crude through the recently reopened Strait of Hormuz in recent days, with at least four more vessels waiting to load. In total, about 10 million barrels of Saudi crude have cleared the strategic waterway, with cargoes destined for China and...

☀️Morning Wire·Jul 2

Rig Report

North Dakota Rig Count Holds at 26, Down Three from Month Ago

The number of active drilling rigs in North Dakota was unchanged overnight, holding steady at 26, according to live data from Bakken Wire. No new rigs were added, none were removed, and none were reported as having moved location since yesterday's report. This flat daily activity follows a period of recent fluctuation. Compared to one week ago, on June 25, 2026, the statewide rig count has increased by one. However, the current level of 26 rigs represents a decline from a month ago; on June 2, 2026, the state reported 29 active rigs, indicating a net decrease of three rigs over the four-week period. The rig count is a closely watched leading indicator of future oil production in the Bakken formation, North Dakota's primary oil-producing region. A stable or declining count can signal a period of consolidation or strategic adjustment among operators, as they focus capital on their most productive...

☀️Morning Wire·Jul 2

Daily Activity

Oasis, Formentera Secure Six New Permits in Burke County

The North Dakota Department of Mineral Resources approved six new drilling permits on Wednesday, July 1, with activity concentrated in Burke County, according to the agency's daily activity report. Oasis Petroleum North America LLC was approved for three permits. Two are for the Isabella 5993 14-1 2BX and Isabella 5993 14-1 3B wells, both located in Lot 1 within the Gros Ventre field. The third, for the Isabella 5993 14-1 4BX, is also in Lot 1 but falls within the Cottonwood field. Formentera Operations LLC received approval for the remaining three permits. All are for wells on the same pad: JACKSON-08-32-PGN S512HF, S614HF, and a second S614HF, all situated in the Larson field. The report also listed confidential status changes for six previously permitted wells, signaling they have likely been spudded or completed. Hess Bakken Investments II, LLC reported changes for three wells in Williams County: the GO-WOLLA-LE-157-97-3422H-1, GO-WOLLA-157-97-3422H-5, and...

☀️Morning Wire·Jul 2

Operator News

India's Fiscal Moves Amid Oil Shock Could Stabilize Key Bakken Market

India is accelerating a plan to sell stakes in major state-held companies to raise billions of dollars, a fiscal maneuver directly tied to covering the costs of a recent global oil price shock, according to a report from OilPrice.com. The move highlights the ongoing strain on major importing nations following the supply disruption caused by the Strait of Hormuz closure earlier this year, a dynamic that impacts global price benchmarks tied to Bakken crude. The Indian government has identified eight state-owned companies for potential stake sales, including major insurers and banks, sources told Bloomberg. Proceeds from sales in the largest firms, like the Life Insurance Corporation of India (LIC), could reach $1 billion each. This effort aims to plug budget gaps after the "Iran war" caused a major supply and price shock that dramatically increased India's energy import bill in March, April, and May. For Bakken operators, India's situation is...

☀️Morning Wire·Jul 2

Global Markets

AI Data Center Boom Drives Record U.S. Battery Storage Deployment

The explosive growth of artificial intelligence is fueling a record surge in demand for battery energy storage systems, a shift with significant implications for North Dakota's power grid and Bakken oil and gas operations. According to a report from OilPrice.com, the United States installed a record 3.3 GW/8.4 GWh of battery energy storage in the first quarter of 2026, surpassing the previous Q1 record by 54%. This boom is largely driven by data center developers who require batteries to manage extreme power fluctuations. "Battery has become an essential component, not a desired component of data centres," said Mukesh Chatter, CEO of battery start-up Alsym Energy, in a Financial Times interview cited by OilPrice.com. Major manufacturers like CATL now expect storage systems to account for half of their sales in coming years. For North Dakota, this rapid deployment of grid-scale storage represents a critical evolution in energy management. The state's Bakken...

☀️Morning Wire·Jul 2

Global Markets

Global Roundup: Grid Investment, Merger Activity, and Gas Rankings

Japanese banks have committed up to $496 million to finance a high-voltage power transmission project in India, according to a report from Nikkei Asia cited by OilPrice.com. The funding from Sumitomo Mitsui Banking Corp, Kansai Mirai Bank, and the Japan Bank of International Cooperation will support a project by India's Power Grid Corporation of India, which is expected to be operational by 2029. The investment is the first under Japan's new POWERR Asia initiative, launched during the Strait of Hormuz crisis earlier this year, and aims to bolster energy resilience. For global energy markets, including those supplying the Bakken, major investments in foreign power grids can influence long-term demand for both renewable energy and the natural gas often used for grid stability. The International Energy Agency noted in a recent report that grid upgrades are a major global priority, specifically to connect renewable-rich regions and reduce power curtailment. In India,...

☀️Morning Wire·Jul 2

Operator News

Global Supply Developments Pressure Oil Markets, Impacting Bakken Pricing

Significant developments among major international oil producers are shaping the global supply landscape, with potential implications for Bakken crude pricing and market share. According to a roundup of reports from Rigzone, new discoveries, rare sales, and export struggles are creating a complex market picture. Malaysia's national oil company Petronas reported new discoveries offshore Suriname, according to Rigzone. The company stated it has now drilled eight successful wells in the South American country with combined recoverable resources estimated at over 1 billion barrels of oil equivalent. This major resource addition contributes to the growing global supply portfolio. In a move highlighting market pressures, Saudi Arabia is taking the unusual step of selling millions of barrels of oil on an ad-hoc, or spot, basis to customers in Asia, Rigzone reported. Such direct spot sales from the kingdom are rare and often signal a need to place excess barrels or compete for market...

☀️Morning Wire·Jul 2

Pipeline & Infrastructure

Global Energy Developments Offer Mixed Signals for Bakken Outlook

Major energy companies are realigning offshore portfolios, with Equinor and Var Energi entering into a swap agreement for stakes in the Gjoa and Troll-Farm areas in the Norwegian North Sea, according to Rigzone. The companies stated the move would support faster tieback developments. While a North Sea transaction does not directly impact the Williston Basin, such international portfolio optimization reflects a continued industry focus on capital efficiency and development speed—factors critical to Bakken operators managing their own asset bases. Meanwhile, oil price expectations remain a central concern. Executives from oil and gas firms revealed their forecasts for West Texas Intermediate crude prices in the second-quarter Dallas Fed Energy Survey, Rigzone reported. While the specific price predictions were not detailed in the summary, such surveys are closely watched by Bakken producers for insights into industry sentiment, which influences drilling budgets and hedging strategies. In global gas markets, Shell indicated that liquefied...

☀️Morning Wire·Jul 2

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Fall Midday Thursday as Bakken Differential Holds Steady

Oil prices traded lower on Thursday, July 2, 2026, with West Texas Intermediate (WTI) crude falling 1.2 percent to $67.76 per barrel. The international benchmark Brent crude declined 1.05 percent to $70.82. The Bakken crude differential to WTI was holding at a discount of $3.42 per barrel. This pricing is critical for North Dakota producers as it determines the netback value of oil extracted from the Williston Basin. The price decline occurred despite supportive inventory data from the U.S. Energy Information Administration. According to a report from Rigzone, U.S. commercial crude oil stocks, excluding the Strategic Petroleum Reserve, fell by almost 4 million barrels for the week ending June 26. Stocks stood at 408.4 million barrels, according to the EIA's latest weekly petroleum status report. Natural gas prices also saw a slight decrease, with the benchmark trading at $3.18, down $0.04. The broader outlook for natural gas was a topic...

🔆Midday Wire·Jul 2

Pipeline & Infrastructure

Kuwait Seeks Investor Consortiums for $7B Pipeline Stake Sale

Kuwait Petroleum Corporation (KPC) has asked asset managers bidding for a stake in its oil pipeline network to form consortiums with other investors for a planned sale estimated at $7 billion, according to a report from OilPrice.com citing Reuters sources. The state firm's process, launched as the Iran war began, suggests a commitment to finalizing a deal despite Middle East geopolitical tensions. This potential transaction follows a model recently established by other major Gulf producers. According to the report, Kuwait aims to join Saudi Arabia and the United Arab Emirates in selling a minority stake in its pipelines under a concession agreement. In such deals, the pipeline assets are typically leased and then leased back to the state company to raise immediate capital. Several major international infrastructure investors have shown interest and advanced in the sales process. The firms reportedly involved include BlackRock’s Global Infrastructure Partners (GIP), Brookfield Asset Management,...

🔆Midday Wire·Jul 2

Global Markets

Russian Fuel Crisis Deepens Amid Escalating Strikes, Raising Global Supply Concerns

A severe fuel crisis in Russia, triggered by escalating Ukrainian drone strikes on refineries, is spreading disruption to Central Asian nations and intensifying global market tensions, according to reports from OilPrice.com. The situation underscores the fragility of regional energy supply chains and has the potential to tighten international diesel and jet fuel markets, factors closely watched by Bakken operators. Russia launched one of its largest assaults of the year on Kyiv overnight on July 2, firing more than 70 missiles and nearly 500 drones and killing at least 17 people, according to OilPrice.com. The Kremlin stated the strike was retaliation for Ukraine's weeks-long drone campaign against Russian oil refineries, which has triggered nationwide fuel shortages. Ukraine responded by launching over 330 drones at targets in the Moscow and Leningrad regions. The Ukrainian drone campaign has caused substantial damage. A strike on July 1 damaged an oil refinery in Ufa, over...

🔆Midday Wire·Jul 2

Global Markets

Oil Glut Predictions Face Reality Check as Shell Sells Gulf Asset

Crude oil prices are falling on reports of recovering flows through the Strait of Hormuz, with some analysts predicting a market surplus. However, a closer look suggests these glut calls may be premature, according to an analysis from OilPrice.com. Morgan Stanley commodity analysts noted this week that attention is turning to a 2027 surplus, citing the "twin solvers" of high U.S. exports and low Chinese imports alongside the Strait reopening. Goldman Sachs analysts similarly pointed to fast-recovering tanker traffic and a discount for immediate crude in Asia. The price pressure stems from a perception of returning Middle Eastern supply. Yet, the report argues this overlooks critical details. The tankers currently leaving the Strait are primarily vessels that had been trapped there for three months during recent conflict, not new vessels arriving to load. Key OPEC producers like Iraq are still far from pre-war output levels; Iraq produced 1.76 million barrels...

🔆Midday Wire·Jul 2

Operator News

Global Oil & Gas M&A, Geothermal Expansion Highlight Midday News

International energy deals and alternative energy developments marked midday industry news Thursday, offering a view of the global landscape in which Bakken producers operate. British oil producer Genel Energy has agreed to acquire Capricorn Energy in a $360 million deal, according to Rigzone. The merger will expand Genel, whose production comes from Iraq's Kurdistan region, into Egypt's Sahara desert. Major mergers and acquisitions among international independents can influence global capital flows and strategic focus, which Bakken operators watch for potential impacts on investment sentiment. Separately, Austrian companies OMV and Energie Steiermark announced a joint early-stage geothermal project, Rigzone reported. The project aims to enable up to 670 gigawatt hours per year of heating capacity in the state of Styria. OMV is a significant integrated energy company with global operations, and its investment in geothermal energy is part of a broader industry trend toward diversifying energy portfolios. For Bakken operators, such...

🔆Midday Wire·Jul 2

Pipeline & Infrastructure

Global Supply Developments Pressure Oil Markets, Impacting Bakken Pricing

International oil supply developments reported Thursday are poised to influence the global market fundamentals that set the price for Bakken crude. These moves add potential downward pressure on benchmarks at a time when North Dakota producers are closely watching margins. According to Rigzone, Malaysia's national oil company Petronas announced new discoveries offshore Suriname, bringing its total to eight successful wells in the region with combined recoverable resources estimated at over one billion barrels of oil equivalent. This significant new resource base represents a future source of global supply. In the Middle East, Saudi Arabia is taking the unusual step of selling millions of barrels of oil on an ad-hoc, or spot, basis to customers in Asia, Rigzone reported Wednesday. This rare move by the world's largest crude exporter indicates a push to place additional barrels onto the market outside of its typical long-term contract sales. Simultaneously, a hoard of Iranian...

🔆Midday Wire·Jul 2

Production Data

Bakken Rig Count Holds at 26 as Oil Prices Retreat

North Dakota's active oil and gas rig count held steady at 26 for the week ending July 2, 2026, as crude oil prices posted midday losses. The count remains near the lowest levels seen in the modern shale era, according to Bakken Wire data. The stability in drilling activity comes amid a pullback in benchmark crude prices. As of midday Thursday, West Texas Intermediate (WTI) crude traded at $67.76 per barrel, down $0.82 or 1.2% on the day. The international Brent crude benchmark was at $70.82, down $0.75. The price for Bakken crude at the wellhead is typically discounted against WTI; the current differential is -$3.42 per barrel. The rig count is a closely watched leading indicator for future oil production in the Bakken formation and Williston Basin. Historically, a sustained increase in the active drilling fleet precedes a rise in output by several months, as new wells are drilled,...

🔆Midday Wire·Jul 2

Workforce & Community

Bakken Rig Count Holds at 26 Amid Market Retreat

The active drilling rig count in North Dakota held steady at 26 on Thursday, July 2, 2026, providing a measure of stability for the region's oilfield workforce even as crude prices declined. West Texas Intermediate (WTI) crude traded at $67.76, down $0.82 or 1.2% for the day, while the global Brent benchmark fell to $70.82. The Bakken crude differential was $-3.42 versus WTI. This rig count, a key indicator of oilfield employment and service company activity, remains significantly below historic boom-era levels but represents a sustained baseline of operations. The direct correlation between rig count and oilfield jobs means the current level supports a core workforce of drillers, fracking crews, and well service personnel across western North Dakota. For Bakken communities, the current environment suggests a period of moderated economic activity. High rig counts historically drive population influxes, straining housing and municipal services, while sharp declines lead to outmigration and...

🔆Midday Wire·Jul 2

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI Slips Near $68.50 as Bakken Discount Widens to $3.42

West Texas Intermediate (WTI) crude oil traded lower Thursday afternoon, while the discount for Bakken crude widened. The front-month WTI contract was at $68.47 per barrel, down 11 cents on the day, according to live price data. The global benchmark Brent crude saw a marginal gain, trading at $71.60. The price for Bakken crude at the Clearbrook, Minnesota, hub was discounted by $3.42 per barrel compared to WTI, a key spread watched by North Dakota producers. Natural gas prices also saw slight downward pressure, with Henry Hub futures at $3.21 per MMBtu. The day's trading was influenced by fresh U.S. inventory data. According to a report from Rigzone citing the U.S. Energy Information Administration's weekly status report, crude oil stocks, excluding the Strategic Petroleum Reserve, fell by almost 4 million barrels for the week ending June 26. Total commercial inventories stood at 408.4 million barrels. This substantial drawdown, typically a...

🌅Afternoon Wire·Jul 2

Rig Report

North Dakota Rig Count Holds at 25 Following Single Deactivation

North Dakota's active drilling rig count stood at 25 on Thursday, July 2, 2026, unchanged from the previous day's total despite a single rig deactivation, according to Bakken Wire live data. One rig was removed from the state's fleet. Continental Resources, Inc. deactivated the NOBLE 4 rig, which had been operating at 152-93-3 in Mountrail County. No new rigs were added, and no rigs were reported as having moved locations. The current level of 25 active rigs represents no change from the count reported one week ago, on June 25, 2026. However, the drilling activity benchmark has softened compared to earlier in the summer. The rig count is down four from the 29 rigs recorded just one month ago, on June 2, 2026. The stability in the weekly count, juxtaposed with the monthly decline, suggests a period of consolidation for operators in the Bakken formation and wider Williston Basin. Rig...

🌅Afternoon Wire·Jul 2

Pipeline & Infrastructure

Canadian West Coast Pipeline Ambitions Hit by Federal Tanker Ban

Prime Minister Mark Carney reaffirmed the federal ban on oil tankers along British Columbia's North Coast on Thursday, creating a new obstacle for Alberta's proposed West Coast pipeline just hours before its official unveiling. According to OilPrice.com, Carney made the announcement alongside B.C. Premier David Eby, effectively removing one of the most attractive export corridors from consideration for Alberta's project. Alberta Premier Danielle Smith's government is pitching a privately financed pipeline with a capacity of one million barrels per day to Canada's West Coast. The province wants Ottawa to designate it as a project of national interest to boost export capacity, reduce dependence on the U.S. market, and strengthen Canada's energy security. However, OilPrice.com reported that the intact tanker ban "immediately narrows the project's options," introducing logistical questions about where oil would be loaded. For Bakken operators and North Dakota's oil market, the uncertainty around Canadian export capacity has direct...

🌅Afternoon Wire·Jul 2

Global Markets

Russia Gasoline Shortage Impacts Central Asian Fuel Markets

A fuel supply crunch in Russia is beginning to affect neighboring markets in Central Asia, according to a report from Rigzone. The development underscores how regional supply disruptions can ripple through interconnected global energy markets. While the direct impact on the Bakken formation in North Dakota may not be immediate, such events contribute to global market volatility. Bakken crude oil is a light, sweet grade that is refined into products including gasoline. Disruptions in one part of the world can alter global trade flows of both crude and refined products, influencing the pricing environment for Williston Basin operators. For Bakken producers, the stability of global refined product markets is a key factor. A sustained gasoline shortage in a major producing region like Russia could tighten global fuel supplies, potentially providing support for crude oil prices. Higher crude prices generally improve margins for Bakken operators and can influence drilling and completion...

🌅Afternoon Wire·Jul 2

Global Markets

Global Energy Shifts Highlight Security, Tech Race as Bakken Watches

European energy policy is facing heightened scrutiny as a severe heat wave coincides with warnings of stalled investment in the continent's clean energy transition. According to a report from Semafor cited by OilPrice.com, bankers at London Climate Action Week last week argued that EU and UK regulations are too prescriptive and risk curbing crucial transition financing. The report states European leaders have "floundered" in response to recent energy crises, failing to establish sufficient protective measures after supply shocks from the war in Ukraine and the closure of the Strait of Hormuz. The continued volatility underscores a global push for energy security through diversification. As noted in an op-ed for Fortune, renewables like wind and solar are increasingly viewed as tools for energy autonomy because they "cannot be embargoed, blockaded, or shut off by a foreign power." However, OilPrice.com reports that Europe's efforts have been "insufficient," leaving a major energy gap...

🌅Afternoon Wire·Jul 2

Operator News

Iran Reasserts Control Over Hormuz, Threatening Oil Price Recovery

Iran's military command issued a stark warning on Thursday, July 2, demanding that all oil tankers transiting the Strait of Hormuz follow routes approved by Tehran or face an "immediate and forceful response," according to a report from OilPrice.com. The warning, broadcast by Iranian state television, also threatened a "rapid and decisive reaction" to any U.S. interference in the critical waterway. This move reasserts Iran's claim to control the world's most important oil chokepoint, directly challenging the narrative that the strait is returning to normal operations. The threat comes despite diplomatic progress, following a meeting between U.S. and Iranian negotiators in Qatar on Wednesday aimed at broadening last month's interim agreement. Further talks are expected after funeral ceremonies for Supreme Leader Ayatollah Ali Khamenei conclude next week, OilPrice.com reported. A core dispute remains unresolved: while the interim deal allows for 60 days of toll-free passage, Tehran insists it holds the...

🌅Afternoon Wire·Jul 2

Pipeline & Infrastructure

Shell Sells Gulf Assets; M&A, Geothermal Deals Announced

Shell PLC has agreed to sell its 50 percent stake in a non-operated Gulf of Mexico platform and associated fields, plus a 100 percent interest in the Coulomb tieback, to Ridgewood Energy and Talos Energy for $1.7 billion, according to Rigzone. The deal, announced July 2, marks a significant divestment for the oil major in the U.S. Gulf. In other corporate activity, Genel Energy has agreed to acquire Capricorn Energy for $360 million, Rigzone reported. The merger will expand the British company, whose production is based in Iraq's Kurdistan region, into operations in Egypt's Sahara desert. Separately, Austrian companies OMV and Energie Steiermark announced a joint early-stage geothermal project in the southeastern state of Styria. The project aims to enable up to 670 gigawatt hours of heating capacity annually, according to Rigzone. For Bakken operators and royalty owners, these transactions highlight ongoing portfolio optimization and consolidation trends across the global...

🌅Afternoon Wire·Jul 2

Regulatory

Global Gas Report Highlights US Production, Petronas Hits Offshore Suriname

A new global energy report confirms the United States as the world's top natural gas producer, while a national oil company announced a significant offshore discovery, according to industry news sources on Thursday. Rigzone examined the Energy Institute's latest statistical review of world energy, which was released recently. The report details which countries produce and consume the most natural gas. The confirmation of continued U.S. leadership in gas production underscores the broader North American market in which Bakken gas and associated liquids are sold. The Bakken formation is a significant contributor to U.S. hydrocarbon output, though the report's global focus does not provide specific basin-level data. In a separate development, Malaysia's national oil and gas company Petronas reported new discoveries offshore Suriname in South America. According to Rigzone, the company stated it has now drilled eight successful wells in the country with combined recoverable resources estimated at over one billion...

🌅Afternoon Wire·Jul 2