Friday, July 3, 2026

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☀️Morning Wire7:00 AM CST

The Morning Take

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Oil Prices

Oil Prices Dip Amid Global Supply Glut; Bakken Differential Widens

Front-month WTI crude oil prices edged lower in early trading Friday, July 3, 2026, trading at $68.38 per barrel, a decline of $0.31. The global benchmark Brent crude was also down, trading at $71.65. The price pressure comes as the market contends with ample physical supply, according to industry reports. Traders cited a fresh wave of available crude as a key factor. TotalEnergies is offering millions of barrels of Iraqi crude that can be promptly delivered to Asia, according to a Rigzone report published today. This move adds to a market already described as "brimming with supply," creating headwinds for global oil prices and, by extension, Bakken crude realizations. The local Bakken crude differential weakened to a discount of $3.42 per barrel below WTI. This widening discount reflects the competitive pressure from other global crudes and can directly impact the wellhead revenue for North Dakota producers. A modest supportive factor...

☀️Morning Wire·Jul 3

Rig Report

North Dakota Rig Count Plummets to Zero Amid Holiday Shutdown

The active drilling rig count in North Dakota fell to zero on Thursday, July 2, as operators idled 25 rigs across the state. According to live rig data, no new rigs were added and none were moved to new locations, resulting in a total shutdown of new drilling activity. This marks a dramatic decline from just one week ago, when the state reported 26 active rigs on June 26. The count is also down sharply from the 31 rigs reported one month ago on June 3. The rigs removed span several major oil-producing counties in the Bakken formation and Williston Basin. McKenzie County saw the largest number of rigs taken offline, with seven rigs removed. Operators shutting down in McKenzie County included Burlington Resources Oil & Gas Company LP, Hess Bakken Investments II, LLC, Devon Energy Williston, L.L.C., Oasis Petroleum North America LLC, and Whiting Oil and Gas Corporation. Mountrail...

☀️Morning Wire·Jul 3

Daily Activity

North Dakota DMR Reports No New Activity Filings for Thursday

The North Dakota Department of Mineral Resources (DMR) reported no new activity in its daily filing report for Thursday, July 2, 2026, according to the agency's data release. The DMR's daily activity report typically lists new drilling permits issued, wells spudded (drilling commenced), wells completed, and wells plugged. A day with no new filings indicates a pause in administrative and field reporting to the state agency. Such no-activity days are a normal occurrence in the state's oil and gas regulatory system. They can happen on any day but are more common on weekends and around holidays. The lack of new filings for Thursday precedes the Independence Day holiday weekend. The report serves as a key daily indicator of near-term drilling and completion work planned by operators across the Bakken formation and the broader Williston Basin. The next report, expected Monday, will provide updated activity data.

☀️Morning Wire·Jul 3

Operator News

ExxonMobil Executes International Deals as Bakken Focus Remains Steady

ExxonMobil has been active in international asset management and project development, according to two separate reports from Rigzone. These moves are part of the supermajor's broader portfolio strategy, which influences capital allocation decisions across its global operations, including the Bakken formation. In Australia, ExxonMobil has transferred operatorship of key gas assets to its joint venture partner, Woodside Energy. According to Rigzone, Woodside has assumed operatorship of the Gippsland Basin Joint Venture and the Kipper Unit JV. The partners continue to each own 50 percent in the Gippsland venture, which supplies about 40 percent of gas needs on Australia's east coast, and 32.5 percent in the Kipper Unit, Woodside said. Operator changes are a routine part of asset lifecycle management for international majors. Separately, ExxonMobil and QatarEnergy have affirmed the commerciality of natural gas discoveries offshore Cyprus. Rigzone reported that the companies signed a 'commercial discovery declaration' with the Cypriot government...

☀️Morning Wire·Jul 3

Global Markets

Russian Fuel Crisis Spurs Indirect Indian Exports, Tightening Global Product Market

India's government has acknowledged that fuel from its refineries is likely reaching Russia via traders, as Moscow grapples with a severe fuel shortage caused by Ukrainian drone strikes. This development tightens the global market for refined products, a key factor for Bakken crude pricing. Indian Oil Minister Hardeep Singh Puri stated that Indian refiners are not directly exporting fuel to Russia, but admitted it is "possible that Indian-origin refined fuel is sold to Russia via traders," according to an OilPrice.com report. This follows reports that an initial shipment of at least 60,000 metric tons (510,000 barrels) of gasoline was dispatched from India to Russian ports. The fuel is reportedly linked to Indian refiner Nayara Energy, in which Russia's Rosneft holds a 49% stake. Sources told Reuters the gasoline was sold to Russia via traders. This trade emerges as Ukraine's intensified drone campaign has knocked offline an estimated 30% of Russia's...

☀️Morning Wire·Jul 3

Global Markets

Wall Street Warns of Oil Glut, Price Drop as Hormuz Reopens

Global oil prices are on track for a fourth consecutive weekly loss as the reopening of the Strait of Hormuz alleviates supply fears, according to reports from OilPrice.com. The bearish shift in market structure and stark warnings from Wall Street banks about a looming supply glut present a challenging price environment for North Dakota producers. Brent crude prices have slumped to the low $70s per barrel, with West Texas Intermediate (WTI) trading below $70, nearing pre-war levels seen four months ago. The tentative reopening of the critical Middle Eastern shipping chokepoint and a U.S.-Iran memorandum of understanding have prompted hopes for a jump in immediate physical supply, OilPrice.com reported. The increase in flows is pressuring the front end of the Brent futures curve, which has moved further into contango, a market structure indicating eased concerns about immediate crude shortages. Investment bank Citigroup is one of the most bearish voices, forecasting...

☀️Morning Wire·Jul 3

Operator News

Grid Operator PJM on Maximum Alert as Heat Wave Strains Power Supply

PJM Interconnection, the operator of the largest U.S. electric grid, has issued a maximum generation alert for July 3, asking power producers to maximize electricity output as a severe heat wave drives demand to near-record levels. According to OilPrice.com, the grid operator has asked generators and transmission owners to defer or cancel maintenance to keep units online. This alert, which also covers a footprint including 13 mid-Atlantic and Midwest states, follows similar actions taken on July 2 and remains in effect through the July 4 weekend. The extreme heat gripping more than two dozen states is significantly increasing the demand for cooling, prompting PJM to take proactive measures to maintain reliable operations. For Bakken operators, this grid stress highlights the importance of reliable power for drilling, completions, and production operations, especially as summer operational challenges were forecast. The North American Electric Reliability Corp's (NERC) 2026 Summer Reliability Assessment, cited by...

☀️Morning Wire·Jul 3

Pipeline & Infrastructure

Oil Steadies, Shell Sells Gulf Assets in Energy Market Moves

Oil prices steadied near recent lows on Thursday, with rising exports through the Strait of Hormuz reinforcing concerns about a growing global supply surplus, according to Rigzone. The price action reflects ongoing market pressures that directly influence the economics of crude production in the Bakken formation. Separately, Shell announced a significant asset divestment in the U.S. Gulf of Mexico. The company is selling its 50 percent ownership in its only non-operated platform there, including associated fields, and 100 percent interest in the Coulomb tieback to Ridgewood Energy and Talos Energy for $1.7 billion, Rigzone reported. The deal is part of a broader industry trend of portfolio optimization and high-grading. For Bakken producers, the persistent global oversupply concern underscores the importance of cost discipline and efficient midstream takeaway capacity. While the Shell transaction is not directly linked to the Williston Basin, such major divestments in other prolific U.S. basins can signal...

☀️Morning Wire·Jul 3

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Stagnant Amid Geopolitical Fatigue, Bakken Discount Holds

Oil prices showed little change in midday trading Friday, with geopolitical uncertainty and pre-holiday thin liquidity keeping the market rangebound. West Texas Intermediate (WTI) crude for August delivery was virtually flat, up just one cent to $68.70 per barrel. The global benchmark, Brent crude, saw a modest gain of 23 cents to $72.03, according to live price data. The discount for Bakken crude at the Clearbrook, Minnesota hub held at $3.42 below WTI. The stagnation follows weeks of high volatility, with traders now looking past daily headlines regarding the fragile U.S.-Iran ceasefire, according to a report from OilPrice.com. ICE Brent has traded in a narrow $71-$73 range this week, signaling market fatigue with gauging the ceasefire's status. This calm comes despite ongoing developments in the Persian Gulf that could impact global supply. One significant development is the potential for increased Iraqi crude flows. TotalEnergies is offering millions of barrels of...

🔆Midday Wire·Jul 3

Operator News

ExxonMobil Advances Offshore Projects as Bakken Portfolio Remains Core

ExxonMobil, a major operator in North Dakota's Bakken formation, has affirmed the commerciality of significant natural gas discoveries offshore Cyprus, according to Rigzone. The company, alongside partner QatarEnergy, signed a 'commercial discovery declaration' with the Cypriot government for two finds in Block 10 of the Mediterranean Sea. Separately, ExxonMobil has transitioned operatorship of key Australian gas assets to Woodside Energy, Rigzone reported. The partners continue to each own a 50 percent stake in the Gippsland Basin Joint Venture and a 32.5 percent interest in the Kipper Unit Joint Venture. The Gippsland venture supplies about 40 percent of the gas needs on Australia's east coast. For Bakken stakeholders, these international moves underscore ExxonMobil's status as a global integrated energy giant with a diversified portfolio. The company maintains a substantial position in the Williston Basin through its subsidiary, XTO Energy. Strategic investments in large-scale, long-cycle international projects like those in Cyprus and...

🔆Midday Wire·Jul 3

Pipeline & Infrastructure

Alberta Seeks National Status for West Coast Oil Pipeline

The government of Alberta has applied to have its proposed West Coast Oil Pipeline project listed as a project of national interest, according to a report from Rigzone. The project is envisioned as a new gateway for Alberta's oil sands crude to reach British Columbia ports for potential export to Asia. For Bakken Shale operators in North Dakota, the advancement of a major new Canadian export pipeline carries significant market implications. Increased pipeline capacity from Western Canada could influence the competitive landscape for crude shipments out of the continent's interior. Bakken crude, which also seeks access to coastal markets, often competes for space on pipelines that move through the same corridors. The designation as a project of national interest, if granted, could streamline the regulatory process for the Alberta-led project. A new large-volume pipeline to the West Coast would provide Canadian producers with an alternative to the U.S. Gulf Coast,...

🔆Midday Wire·Jul 3

Global Markets

Russia Strikes Kyiv, China Warns on Hormuz as Global Tensions Simmer

Russia launched one of its largest attacks on Ukraine's capital this year on July 2, according to OilPrice.com. The assault on Kyiv killed at least 27 people and caused extensive damage, reigniting calls in the U.S. for tougher measures against Moscow. The strike drew immediate condemnation from U.S. lawmakers, with several framing it as a sign of Russian desperation ahead of a NATO summit. Republican Congressman Joe Wilson of South Carolina called the attack "yet more evidence that Russia is badly losing its war" and stated, "The USA and its allies should do even more of what it's doing," according to OilPrice.com. He described Russian President Vladimir Putin as "a pathetic loser who murders women and children." Other lawmakers criticized the U.S. response. Don Bacon of Nebraska, a senior Republican on the House Armed Services Committee, told RFE/RL there was "growing unease in Congress" over the Pentagon's posture and said,...

🔆Midday Wire·Jul 3

Global Markets

Japan Seeks Post-Hormuz Crude, U.S. Supply Gains Importance

Japan's top oil refiner is planning a strategic shift away from Middle Eastern crude following the supply shock caused by the closure of the Strait of Hormuz, a move that could solidify long-term demand for U.S. exports, including from the Bakken. According to an interview published by OilPrice.com on Friday, Eneos Holdings CFO Soichiro Tanaka said the company has stabilized its supply chain through September but sees a clear need to diversify. "From the perspectives of risk hedging and national energy security, there is no doubt that reducing dependence on the Middle East over the medium to long term would be preferable," Tanaka told Reuters. Before the Iran war, Japan relied on the Middle East for 95% of its crude imports. The disruption forced the country to tap its strategic reserves and seek alternative suppliers. Japan's pivot has already benefited U.S. producers. The source data notes that alternative supply from...

🔆Midday Wire·Jul 3

Operator News

Global Supply Surplus Grows as Exports Rise, Pressuring Prices

Global oil supply is increasing, reinforcing a supply surplus that is keeping prices near multi-year lows, according to reports from Rigzone. This trend creates a more competitive market for Bakken crude, which must vie for buyers against a rising tide of international barrels. TotalEnergies is offering millions of barrels of Iraqi crude that can be promptly delivered to Asia, traders told Rigzone. This adds immediate, seaborne supply to a key export market for U.S. producers, including those in North Dakota who ship crude to Asian refiners. Concurrently, Saudi Arabia's crude oil exports have surged close to their pre-war levels, Rigzone separately reported. The increase comes as the kingdom successfully moves more tankers through the critical Strait of Hormuz, a major chokepoint for Middle Eastern supply reaching the global market. These rising exports have reinforced concerns about a growing global supply surplus, Rigzone noted. Oil prices have steadied but remain near...

🔆Midday Wire·Jul 3

Production Data

Bakken Rig Count Falls to Zero as Prices Hold Steady

North Dakota's oil industry reached a historic milestone this week as the active rig count in the state fell to zero, according to live Bakken Wire data. The unprecedented drop in drilling activity comes as West Texas Intermediate (WTI) crude held steady at $68.70 per barrel, with the Bakken crude differential standing at a discount of $3.42 below the WTI benchmark. The rig count, a closely watched leading indicator for future oil production, has now hit its lowest possible level. Historically, the number of active drilling rigs in the Bakken formation has served as a direct proxy for operator confidence and capital expenditure. A sustained low or declining rig count typically foreshadows a slowdown in production growth or an eventual decline, as new wells are not being drilled to offset the natural decline of existing wells. Current price fundamentals provide some context for the activity freeze. While WTI showed a...

🔆Midday Wire·Jul 3

Workforce & Community

Bakken Rig Count Hits Zero as Oil Prices Hold Steady

The number of active drilling rigs in the Bakken formation fell to zero on Friday, July 3, according to live data from Bakken Wire. This marks a historic low for operational rigs in North Dakota's primary oil-producing region. The zero rig count reflects a severe contraction in immediate drilling employment needs across western North Dakota. Direct rig-site jobs, including drillers, derrickhands, and other field personnel, are directly tied to this metric. With no rigs running, demand for this segment of the oilfield workforce has effectively ceased. The steady but modest commodity prices provide little incentive for operators to resume drilling. Bakken Wire data showed WTI crude trading at $68.70, a gain of just one cent, while Brent crude was at $72.03. At these price levels, many operators find new drilling projects economically unviable, leading to the complete idling of drilling operations. This prolonged downturn in activity has cascading effects on...

🔆Midday Wire·Jul 3

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Edge Higher as Supply Rebound Meets Regulatory Scrutiny

Oil prices posted modest gains in afternoon trading Friday, with West Texas Intermediate (WTI) crude settling at $68.78 per barrel, a 13-cent increase. The global Brent benchmark rose 46 cents to $72.13. North Dakota Bakken crude traded at a discount of $3.42 per barrel versus WTI, according to live market data. The slight upward move comes amid a significant rebound in OPEC production and increased regulatory pressure on the fuel supply chain. OPEC output jumped by 3.3 million barrels per day (bpd) in June to 19.43 million bpd, according to a Reuters survey cited by OilPrice.com. The increase is largely attributed to Gulf producers restarting wells shut in during recent Middle East disruptions and Iran restoring flows after a U.S. naval blockade was lifted. However, the report notes production remains well below pre-crisis levels and OPEC quotas, as tanker traffic through the critical Strait of Hormuz has not fully recovered....

🌅Afternoon Wire·Jul 3

Rig Report

North Dakota Rig Count Steady at 25, Down Six From June

The number of active drilling rigs in North Dakota remained unchanged at 25 on Friday, July 3, according to the latest live rig data. There were no new rigs added, no rigs removed, and no rigs that moved location since the previous day's count. While the daily activity was static, the current count reflects a continuing downward trend in drilling activity across the state's oil fields. The rig count is down one from the 26 rigs reported active one week ago on June 26. The broader trend shows a more significant decline over the past month. Compared to the 31 rigs operating on June 3, the current fleet of 25 represents a net decrease of six rigs, or approximately a 19% reduction in drilling activity over that 30-day period. The Bakken formation is North Dakota's primary oil-producing region, and the rig count is a leading indicator of future production activity....

🌅Afternoon Wire·Jul 3

Operator News

ExxonMobil Advances Global Portfolio with Cyprus, Australia Deals

ExxonMobil, a significant leaseholder and producer in North Dakota's Bakken formation, announced two major international developments on Friday, July 3, according to reports from Rigzone. The moves highlight the global scale of the company's portfolio management, which can influence capital allocation and strategic focus. In the Eastern Mediterranean, ExxonMobil and partner QatarEnergy affirmed the commerciality of two discoveries in Block 10 offshore Cyprus, Rigzone reported. The companies signed a 'commercial discovery declaration' with the Cypriot government, a key step toward developing offshore gas resources. Separately, in Australia, ExxonMobil transferred operatorship of key gas assets in the Gippsland Basin and Kipper Unit joint ventures to partner Woodside Energy, according to a separate Rigzone report. The partners continue to each own 50 percent of the Gippsland Basin JV, which supplies about 40 percent of gas needs on Australia's east coast, and 32.5 percent of the Kipper Unit JV. For Bakken operators and...

🌅Afternoon Wire·Jul 3

Pipeline & Infrastructure

Alberta Seeks National Status for West Coast Oil Pipeline Project

The government of Alberta has applied to have its proposed West Coast Oil Pipeline project listed as a project of national interest, according to a report from Rigzone. The pipeline is envisioned as a new gateway for Alberta's oil sands crude to reach ports in British Columbia for eventual export to Asian markets. For Bakken Shale operators in North Dakota, the advancement of a major Canadian export pipeline presents a complex market picture. Increased Canadian crude access to global markets, particularly Asia, could alter long-term competition for market share on the U.S. West Coast, a potential outlet for Bakken crude shipped by rail. The designation as a project of national interest, if granted, could streamline regulatory hurdles for the Alberta project, accelerating its development timeline. This comes as Bakken producers continue to rely on a network of pipelines, rail, and trucking to move crude to refineries across the U.S. The...

🌅Afternoon Wire·Jul 3

Regulatory

Texas Oil Regulator Directs DOGE to Enhance RRC Efficiency

A top regulator in Texas has directed the state's oil and gas oversight body to enhance its operational efficiency, according to a report from Rigzone. The Texas Railroad Commission (RRC) was given the directive, though specific details of the plan were not provided in the summary. The development was reported by Rigzone on Friday, July 3, 2026. In the report, RRC Commissioner Wayne Christian was quoted as stating, "Our goal is simple," though the full context of his statement was not included. While this action is specific to Texas, the operations of major state oil and gas regulators are closely watched by the industry nationwide. Texas' RRC is one of the most influential regulatory bodies in the U.S. energy sector. Any significant shift in its operational philosophy or efficiency can set a precedent for other oil-producing states. For Bakken operators in North Dakota, the move highlights an ongoing focus on...

🌅Afternoon Wire·Jul 3

Global Markets

Russia Jet Fuel Crisis Highlights Global Refinery Risk, Supply Shifts

Russia, one of the world's largest oil producers, is preparing to import at least 200,000 barrels of jet fuel from Japan via South Korea, according to a report from OilPrice.com. This move underscores the severity of the fuel crisis triggered by Ukrainian drone strikes on Russia's refining system, storage depots, and fuel logistics. For a country that was recently an exporter of aviation fuel, the import plans represent a significant shift. Russia has banned most jet fuel exports through November to preserve domestic supplies, according to the report. Data from Kpler cited by Reuters shows Russian jet fuel exports have fallen to about 13,000 barrels per day this year, down from roughly 30,000 bpd in 2025. The crisis is deepening, with President Vladimir Putin recently admitting fuel shortages were serious enough to warrant direct government intervention. A 24-hour monitoring center is now tracking supplies nationwide. The shortages are also impacting...

🌅Afternoon Wire·Jul 3

Global Markets

Global Outlooks Diverge as Refiners Profit; Copper Awaits Washington

Conflicting outlooks for global oil supply and strong refining profits are shaping the energy landscape as base metals markets shed their war premium and await a U.S. policy decision on copper, according to industry reports published Friday. Major energy forecasters have sharply diverged in their projections for the Strait of Hormuz recovery and its impact on global oil balances. According to OilPrice.com, the International Energy Agency (IEA) and BloombergNEF (BNEF) have significantly narrowed their predicted supply deficits for 2026, now seeing shortfalls of 900,000 barrels per day and 500,000 b/d respectively, down from a 2 million b/d deficit forecast a month earlier. In contrast, the U.S. Energy Information Administration (EIA) stated it does not expect a recovery to pre-war traffic levels before early 2027, projecting global oil inventories will fall by an average of 7.6 million b/d in the third quarter of 2026. The monthly Reuters poll of oil price...

🌅Afternoon Wire·Jul 3

Operator News

Global Market Moves: Consumption Up, Exports Rise, Division Remains

Global oil consumption reached a new record in 2025, with the United States solidifying its position as the world's top consumer, according to a report examined by Rigzone. The Energy Institute's latest statistical review shows continued growth in worldwide demand, a fundamental factor supporting long-term production activity in regions like the Bakken. Meanwhile, the market structure for crude oil remains divided, Rigzone reported, citing analysis from Waleed Said, a Technical Analyst at GivTrade. This split market dynamic, often seen in differing price movements between global benchmarks and regional grades, can directly impact the pricing differentials for Bakken crude shipped from North Dakota. In a significant development for global supply, Saudi Arabia's crude oil exports have surged close to their pre-war levels, Rigzone reported. The increase comes as the kingdom resumes moving more tankers through the critical Strait of Hormuz. A return of substantial Saudi volumes to the market adds to...

🌅Afternoon Wire·Jul 3