Tuesday, July 7, 2026

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Oil Prices

Oil Prices Edge Higher Despite Saudi Price Cuts, Hormuz Traffic Recovers

Oil prices posted modest gains early Tuesday, with West Texas Intermediate (WTI) crude trading at $69.14 per barrel, up 0.86%, according to live price data. Brent crude rose 1.06% to $72.75. The price for Bakken crude at the wellhead was discounted by $3.42 per barrel versus WTI. Natural gas held steady at $3.25. The slight upward move comes despite significant downward pressure from major Middle East producers. According to OilPrice.com, Gulf oil exporters, led by Saudi Arabia, are slashing prices in a race to entice buyers. Saudi Arabia cut its official selling price for Asian buyers by as much as $11 per barrel, with its flagship Arab Light crude now trading at a $1.50 discount to the Dubai/Oman average. Analysts cited weak Asian demand, particularly from China, and the return of temporarily unsanctioned Iranian crude to the market as key factors shifting power to buyers. "Weak Asian demand... together with...

☀️Morning Wire·Jul 7

Rig Report

North Dakota Rig Count Holds at 23, Down Four From Month Ago

North Dakota's active drilling rig count held steady at 23 on Tuesday, July 7, 2026, with no additions, removals, or location changes reported since the previous day, according to live rig data. The current count represents a decline of one rig compared to one week ago, when 24 rigs were active on June 30. The broader trend shows a more significant pullback, with the state's rig fleet down by four from the 27 rigs working one month ago on June 7. The Bakken formation is North Dakota's primary oil-producing region, and the rig count is a key leading indicator for future production activity and service sector demand. A sustained rig count in the low-to-mid 20s suggests operators are maintaining a disciplined capital approach, focusing on core acreage and efficiency gains rather than aggressive expansion. While day-to-day figures can be static, the monthly decline of four rigs points to a potential...

☀️Morning Wire·Jul 7

Daily Activity

Heberdev Secures Six New Bakken Permits in Burke County

The North Dakota Department of Mineral Resources approved six new drilling permits on Monday, July 6, all filed by Heberdev Operating LLC for a single pad in Burke County, according to the daily activity report. All six permits are for the Little Bit 161-91 pad in the Northeast Foothills field. The approved wells are designated 1H-B, 2H-TF, 3H-B, 5H-B, 6H-TF, and 7H-B. This concentrated activity highlights continued operator interest in the northwestern reaches of the Bakken formation. In other activity, five wells were released from confidential status, providing new details on recent drilling by Hess and Devon Energy. According to the report, Hess Bakken Investments II, LLC had two wells in Williams County come off confidential status: the GO-ZONA-157-98-3523H-2 in section 35-157N-98W and the GO-BARB-157-97-3523H-2 in section 35-157N-97W. Devon Energy Williston, L.L.C., had three wells released from confidential status. Two are located in McKenzie County: the William 25-36 6H in...

☀️Morning Wire·Jul 7

Operator News

Bangchak Completes Acquisition of Chevron Hong Kong Fuel Business

Thai energy group Bangchak has completed its acquisition of Chevron's fueling business in Hong Kong, according to a report from Rigzone. The deal, finalized on July 7, 2026, involves the purchase of Chevron's retail fuel stations in the region. The acquired stations will continue to operate under the Caltex brand for a transition period of two years, Rigzone reported. The transaction represents a strategic divestment by Chevron of a non-core downstream asset in Asia. For Bakken operators and the broader North Dakota oil industry, such international portfolio moves by supermajors like Chevron are a regular feature of the global market. Major integrated companies frequently optimize their worldwide asset portfolios, selling downstream or geographically distinct holdings to focus capital on core upstream production basins or new energy ventures. While this specific transaction involves Asian retail assets and does not directly impact Chevron's operations in the Williston Basin, it underscores the continuous...

☀️Morning Wire·Jul 7

Global Markets

Global LNG Growth Anchored by US Exports as Geopolitical Tensions Rattle Markets

Global LNG trade reached a record 437 million tons in 2025, growing 6.3% due largely to higher supply from the United States and Qatar, according to the International Gas Union's World LNG Report 2026 published Tuesday. The IGU reported this was the strongest annual growth since 2022, with the U.S. remaining the top LNG exporter. For Bakken operators with significant gas production and gas processing assets, the sustained growth in U.S. LNG exports provides a critical long-term demand outlet. The report noted that 68.4 million tonnes per annum of new liquefaction capacity reached final investment decision in 2025, the strongest year for project approvals since 2019. However, this growth faces immediate headwinds from geopolitical instability. The IGU stated that conflict in the Middle East has damaged LNG infrastructure, clouded the outlook for regional expansion projects, and exposed Asian buyers to flow uncertainty and higher prices. "The conflict in the Gulf...

☀️Morning Wire·Jul 7

Global Markets

Global Volatility Boosts Trading, India Resumes Iraqi Crude Imports

Shell expects significantly higher oil and LNG trading results for the second quarter, according to an update from the supermajor on Tuesday. The company attributed the expected windfall to extreme volatility in energy markets driven by the war in Iran. Shell and other European majors, including BP and TotalEnergies, previously reported higher-than-expected Q1 profits on the back of very strong trading results, with analysts estimating such profits can reach billions of dollars per quarter during times of high volatility. Meanwhile, global crude flows are showing tentative signs of resuming through a key chokepoint. Indian state refiners have resumed buying Iraqi crude that must transit the Strait of Hormuz, according to OilPrice.com. Mangalore Refinery and Petrochemicals Limited (MRPL) has chartered the Aframax tanker Jasmin Joy to load crude from Iraq’s Basrah oil terminal on July 19-20. This is the first such charter by an Indian state refiner since tankers began moving...

☀️Morning Wire·Jul 7

Operator News

Global Energy Developments Highlight Market Risks, Diversification

An attack on a key global shipping lane and continued investment by major oil companies in renewable energy highlight the external market dynamics facing Bakken producers. According to Rigzone, a laden Qatari LNG carrier was struck by a projectile near the Omani coast on July 7 as it exited the Strait of Hormuz. The incident is heightening unease among shipowners and testing a U.S.-Iran agreement intended to halt attacks in the vital waterway. The Strait of Hormuz is a critical chokepoint for global oil and LNG shipments. Any disruption there can lead to increased volatility in global energy prices, which directly impacts the realized price for Bakken crude. While North Dakota's oil flows primarily via pipeline and rail to domestic markets, global benchmark prices set the overall revenue environment for operators and royalty owners in the state. Separately, two major energy firms with global footprints announced significant moves in renewable...

☀️Morning Wire·Jul 7

Pipeline & Infrastructure

Global Energy Report Highlights US Role; Enverus Lists Top Private Producers

A new global energy report highlights the United States' continued prominence as a major energy supplier, providing a macro backdrop for operators in North Dakota's Bakken formation. According to Rigzone, the Energy Institute recently released its latest statistical review of world energy, though specific rankings were not detailed in the summary. Separately, data firm Enverus has published its annual list of the 100 most prolific private oil and gas producers in the United States. Rigzone reported the list's release on July 6, 2026. The ranking is a key industry benchmark for tracking the output of non-publicly traded companies. For Bakken stakeholders, these reports offer critical context. The U.S. position as a top global energy supplier is underpinned by prolific shale basins like the Bakken. The formation is a cornerstone of U.S. oil production and a significant contributor to national energy exports. The Enverus list of top private producers is particularly...

☀️Morning Wire·Jul 7

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Rally Over 2.7% Amid Supply Rebound, Market 'Reboot'

Oil prices climbed sharply in midday trading Tuesday, with both major benchmarks posting gains of more than 2.7%. West Texas Intermediate (WTI) crude was trading at $70.41 per barrel, up $1.86, while Brent crude rose $2.05 to $74.04, according to live price data. Natural gas saw a modest increase to $3.28. The rally comes as the global oil market is "attempting a system reboot," according to J.P. Morgan analysts cited by Rigzone. This follows a period of extreme volatility driven by the Iran conflict and subsequent reopening of key shipping lanes. A significant surge in supply from the Persian Gulf is a key factor reshaping the market. According to OilPrice.com, the United Arab Emirates raised its crude output to above 3.8 million barrels per day in June, its highest level since April 2020. This jump followed the UAE's exit from OPEC and OPEC+ on May 1, freeing it from production...

🔆Midday Wire·Jul 7

Operator News

Thai Firm Bangchak Completes Chevron Hong Kong Acquisition

Thai energy group Bangchak has completed its acquisition of Chevron's fueling station business in Hong Kong, according to a report from Rigzone. The acquired stations will continue to operate under the Caltex brand for a two-year period. While the transaction is a downstream retail move in Asia, it underscores the ongoing portfolio management and global scale of the international majors operating in North Dakota's Bakken formation. Chevron is a significant operator in the Williston Basin, holding extensive acreage and production assets. For Bakken watchers, such international divestments can signal a company's strategic focus and capital allocation priorities. Major operators like Chevron routinely optimize their global asset portfolios, which can indirectly influence investment levels in different regions, including U.S. shale. The completion of this sale, as reported by Rigzone, does not indicate any change to Chevron's position in the Bakken. The company continues to be a top-tier producer in the state....

🔆Midday Wire·Jul 7

Pipeline & Infrastructure

Ugandan Farmers Sue in UK Court to Block Near-Completed $5B EACOP Pipeline

A group of Ugandan farmers filed a case in the UK High Court on Tuesday seeking to halt the nearly completed $5 billion East African Crude Oil Pipeline (EACOP), according to a report from OilPrice.com. The lawsuit, targeting developer EACOP Ltd., underscores the persistent legal and environmental challenges facing major pipeline projects worldwide, a context Bakken operators monitor closely. The 1,443-kilometer pipeline, led by French supermajor TotalEnergies, is designed to transport crude from Uganda’s Albertine Graben to the port of Tanga in Tanzania. According to OilPrice.com, the pipeline could be completed as soon as this month, with first shipments expected late this year or in early 2027. It is designed to carry up to 246,000 barrels per day, enabling Uganda's first oil exports from the Tilenga and Kingfisher fields. The plaintiffs, represented by law firm Leigh Day, contend the pipeline and associated oil production would harm local water resources, wildlife,...

🔆Midday Wire·Jul 7

Global Markets

Global Crude Weakness, Hormuz Strikes Create Volatile Price Outlook for Bakken

Geopolitical risk returned to oil markets Tuesday after drone strikes hit shipping in the Strait of Hormuz, pushing ICE Brent prices toward $74 per barrel, according to OilPrice.com. This price support contrasts sharply with extreme weakness in the physical crude market, a volatility that directly impacts pricing for Bakken crude streams. The physical market malaise is underscored by drastic price cuts from Saudi Aramco. The Saudi national oil company slashed its official selling prices for Asia-bound cargoes in August by $11 per barrel, almost double the expected cut, OilPrice.com reported. For European buyers, the cut was even deeper at $15 per barrel, marking the largest monthly reduction for both regions since at least 2000. Saudi Arabia's flagship Arab Light crude is now priced $1.50 per barrel below the Oman/Dubai benchmark. Demand for Saudi crude has collapsed in key markets. Chinese nominations for June fell to just 14 million barrels (470,000...

🔆Midday Wire·Jul 7

Global Markets

Global Geopolitics, Portfolio Moves Impact Energy Markets

Geopolitical tensions and corporate portfolio shifts are influencing global energy markets as North American drilling activity paused its recent growth streak this week, according to industry reports. The NATO alliance is meeting in Ankara, Turkey, on July 7-8, with defense spending a dominant issue, according to OilPrice.com. U.S. President Donald Trump has again questioned the alliance's reciprocity ahead of the summit. NATO Secretary General Mark Rutte countered that the other 31 allies are investing around 4 percent of their GDP in defense, often by purchasing American-made equipment. The summit occurs in the shadow of the Iran war, a key factor for global oil market stability. In a separate corporate development, BP has exited the Bay du Nord project offshore Canada, Rigzone reported. The transaction aligns with the company's focus on portfolio simplification and disciplined capital allocation, according to the source. Meanwhile, North America's weekly rig count addition streak has ended....

🔆Midday Wire·Jul 7

Operator News

Shell Gas Trading Surge, EU LNG Shift Signal Global Demand

Shell expects trading results for its Integrated Gas segment to be "significantly higher" for the second quarter of 2026 compared to the first quarter, according to Rigzone. The announcement, made on July 7, points to continued volatility and opportunity in global gas markets. Simultaneously, European energy security efforts and import trends are evolving. Germany's oil stockpiling agency, EBV, is looking to refill strategic reserves of diesel, Rigzone reported separately on July 7. This move indicates ongoing government-level demand for refined products in a key global market. Further defining the European energy landscape, liquefied natural gas (LNG) made up 45 percent of European Union gas imports in 2025, according to data from the European Commission cited by Rigzone. This marked a nine-percentage-point increase, representing about 4.63 trillion cubic feet of LNG and deepening a structural shift in the EU's supply mix away from pipeline gas. For Bakken operators and midstream companies,...

🔆Midday Wire·Jul 7

Pipeline & Infrastructure

Global Oil Market Volatility Intensifies Amid Saudi Price Cut, Strait Incident

Oil markets faced significant downward pressure early this week after Saudi Arabia sharply cut its flagship crude prices, according to Rigzone. The move sent prices to five-month lows, a development that directly impacts the pricing of Bakken crude which competes in a global market. Simultaneously, a new risk to global energy shipments emerged in a critical chokepoint. A Qatari liquefied natural gas carrier was hit and a laden Saudi oil tanker suffered damage as they exited the Strait of Hormuz, Rigzone reported. The incident heightens unease among shipowners and tests a U.S.-Iran agreement to halt attacks. Any sustained disruption in the Strait, a major conduit for global seaborne oil, can lead to volatility that affects the price differentials for landlocked crudes like Bakken. For North Dakota producers and royalty owners, a lower global oil price environment squeezes margins, while geopolitical risks can offer temporary price support due to perceived supply...

🔆Midday Wire·Jul 7

Production Data

Bakken Rig Count Holds at 23 as Oil Prices Rally

The number of active drilling rigs in North Dakota held steady at 23 on Tuesday, July 7, according to midday data from Bakken Wire. This count persists at a level far below the boom-era peaks, even as oil prices posted significant gains. West Texas Intermediate (WTI) crude was trading at $70.41 per barrel, up $1.86 or 2.71% from the prior settlement. The international benchmark Brent crude rose to $74.04, a gain of $2.05. The Bakken crude differential, the discount at which local barrels trade compared to WTI, was -$3.42. Natural gas was priced at $3.28 per MMBtu. The current rig count of 23 provides a key leading indicator for future oil production in the Bakken formation, North Dakota's primary oil-producing region. Historically, the number of active drilling rigs has a direct, though lagged, correlation with production levels. A sustained increase in rigs typically precedes a rise in output by several...

🔆Midday Wire·Jul 7

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Surges Over 5% on Hormuz Attacks as Inventories Tighten

Oil prices surged more than 5% Tuesday, with West Texas Intermediate (WTI) crude closing at $72.30 per barrel, a gain of $3.75. Brent crude rose $4.01 to $76.00 per barrel, according to live market data. The rally was driven by a series of attacks on oil tankers in the Strait of Hormuz, reigniting immediate supply concerns despite recent progress in reopening the critical chokepoint. The price jump provides a direct boost to Bakken producers. The Bakken crude differential narrowed to -$3.42 per barrel versus WTI, meaning local crude is priced around $68.88. The strong benchmark pricing, if sustained, improves cash flow for operators across the Williston Basin. The rally contrasts with recent analyst warnings of a potential global oil glut as tanker traffic from the Persian Gulf increases. According to OilPrice.com, OPEC's combined output rose by 3.3 million barrels per day last month to 19.43 million bpd, and the United...

🌅Afternoon Wire·Jul 7

Rig Report

North Dakota Rig Count Rises to 24 with Three New Additions

North Dakota's active drilling rig count rose to 24 on Tuesday, a net increase of one rig from the previous day, according to live Bakken Wire data. Three new rigs were deployed while two were removed from operation. The new additions were all concentrated in Williams County. Devon Energy Williston, L.L.C. spudded the NABORS B 13 at location 154-102-6. Enerplus Resources USA Corporation added the PATTERSON 806 at 157-99-11. Continental Resources, Inc. deployed the NOBLE 4 at 155-95-2. Two rigs were removed from the field. Marlo Operating Company, LLC's STONEHAM 16 was released from location 129-103-19 in Bowman County. XTO Energy Inc.'s H & P 429 was released from 154-96-10 in Williams County. No rigs were reported as having moved locations. The current count of 24 rigs holds steady compared to one week ago on June 30, 2026. However, activity remains down by three rigs from the level of 27...

🌅Afternoon Wire·Jul 7

Operator News

Bangchak Completes Acquisition of Chevron Hong Kong Assets

Thai energy group Bangchak Corporation has completed its acquisition of Chevron's fueling business in Hong Kong, according to a report from Rigzone. The deal, finalized on July 7, 2026, involves stations that will continue to operate under the Caltex brand for a two-year period. This move represents Bangchak's continued strategic expansion beyond its domestic market. For observers of the North Dakota oil patch, the transaction underscores Bangchak's growing global footprint and financial capacity, which recently became directly relevant to the Bakken formation. Bangchak entered the Bakken operator landscape in late 2025 through its $4.3 billion all-cash purchase of Hess Corporation's Bakken assets. That acquisition made Bangchak one of the major operators in the prolific Williston Basin, taking over Hess's significant infrastructure, including over 1,600 wells, the Tioga Gas Plant, and a large equity stake in the Bakken pipeline network. The completion of the Hong Kong deal, while geographically distant, signals...

🌅Afternoon Wire·Jul 7

Global Markets

Global Tensions Spike Oil, Nuclear Loan Plan Unveiled, Central Asia Seeks Routes

Global oil prices jumped on Monday following new attacks on shipping near the critical Strait of Hormuz, according to Rigzone. The U.S. responded by revoking a waiver that had allowed Iranian oil sales, threatening a fragile ceasefire with Iran. The renewed tension underscores the persistent geopolitical risks to global energy flows that can impact Bakken crude pricing. The Strait of Hormuz is a vital chokepoint for seaborne oil trade. In U.S. energy policy, the federal government announced over $17 billion in federal loans aimed at revitalizing the nation's aging nuclear power fleet, OilPrice.com reported. The $17.5 billion nuclear loan deal is part of a Trump administration push for "lasting American dominance in the global nuclear energy market." The initiative faces significant hurdles. Almost all U.S. nuclear reactors were built between 1967 and 1990, with only the troubled Plant Vogtle in Georgia completed in the last decade. Experts cite the program's...

🌅Afternoon Wire·Jul 7

Operator News

BP Exits Canadian Offshore Project, Shell Sees Gas Trading Jump

BP has exited the Bay du Nord project offshore Canada, according to Rigzone. The move, reported Tuesday, is consistent with the company's focus on "portfolio simplification and disciplined capital allocation," the source said. The Bay du Nord project is a frontier offshore oil development. Separately, Shell expects trading results for its Integrated Gas segment to be "significantly higher" in the second quarter compared to the first quarter, Rigzone reported Tuesday. The company did not provide specific figures. In other energy news, Germany's oil stockpiling agency, EBV, is looking to refill strategic reserves of diesel, according to a separate Rigzone report Tuesday. For Bakken operators and the wider Williston Basin, these developments highlight the continued global focus on capital discipline and portfolio optimization among majors. BP's exit from a large-scale, long-cycle international project underscores a strategic shift towards more focused spending, a trend that can influence investment appetites across the industry,...

🌅Afternoon Wire·Jul 7

Pipeline & Infrastructure

Global LNG Shift, Market Reboot, and Gas Prices Frame Bakken Outlook

Liquefied natural gas (LNG) accounted for 45 percent of European Union gas imports in 2025, deepening a structural shift in the continent's supply mix, according to the European Commission. The share represented an increase of nine percentage points, totaling about 4.63 trillion cubic feet, Rigzone reported Tuesday. This sustained global demand for LNG provides a long-term backdrop for associated natural gas production in the Bakken formation, where gas capture and infrastructure remain key operational focuses. Separately, analysts at J.P. Morgan stated the oil market is "attempting a system reboot," Rigzone reported. The analysis, which included commentary from the bank's Head of Global Commodities Strategy Natasha Kaneva, points to ongoing volatility and rebalancing efforts in global crude markets. For Bakken operators, such macroeconomic shifts underscore the importance of cost discipline and flexible drilling plans in response to price signals. On the consumer front, the recent Independence Day holiday saw the third...

🌅Afternoon Wire·Jul 7

Regulatory

Strait of Hormuz Incident Raises Global Oil Market Tensions

A maritime incident in a critical global oil chokepoint is heightening market unease, according to a report from Rigzone. A Qatari liquefied natural gas carrier was hit and a laden Saudi oil tanker suffered damage as they exited the Strait of Hormuz on Tuesday. The event tests a U.S.-Iran agreement to halt attacks in the region, Rigzone reported. The Strait of Hormuz is a vital passageway for seaborne oil and LNG exports from the Middle East, including from major producers like Saudi Arabia, Qatar, and the United Arab Emirates. Any disruption or heightened risk in the strait typically leads to increased volatility in global benchmark oil prices, such as Brent and West Texas Intermediate (WTI). While Bakken crude is priced domestically, it is closely correlated with these international benchmarks. A sustained geopolitical risk premium in global markets can support higher price levels for North Dakota producers. For Bakken operators and...

🌅Afternoon Wire·Jul 7

Production Data

North Dakota Rig Count Holds at 24 as Oil Prices Surge Above $72

North Dakota's active drilling rig count held steady at 24 on Tuesday, a level that historically signals a plateau in the state's oil output, even as crude prices rallied sharply. The WTI benchmark surged 5.47% to $72.30 per barrel, while Brent crude rose 5.57% to $76.00, according to live Bakken Wire data. The current rig count remains near multi-year lows for the Bakken formation. Historically, the number of active drilling rigs is a leading indicator for future oil production, with a lag of several months between new well spuds and sustained output additions. The prolonged period with rigs in the mid-20s suggests operators are maintaining a disciplined focus on capital efficiency and shareholder returns over aggressive growth. Natural gas prices were reported at $3.27 per MMBtu. The Bakken crude differential—the discount at which Bakken barrels trade against the WTI benchmark—was -$3.42. This differential impacts the netback price realized by producers...

🌅Afternoon Wire·Jul 7