Thursday, July 16, 2026

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Oil Prices

Oil Prices Edge Higher on Supply Risks, Falling U.S. Crude Stocks

Crude oil prices rose modestly early Thursday, supported by a larger-than-expected draw in U.S. inventories and continued supply concerns in the Middle East affecting global energy markets. West Texas Intermediate (WTI) crude traded at $79.96 per barrel, up 0.45% on the day, according to live price data. The U.S. Energy Information Administration reported a nearly 2 million barrel weekly draw in commercial crude oil stocks, excluding the Strategic Petroleum Reserve. Inventories stood at 409.7 million barrels as of July 10, according to Rigzone. The drawdown provided fundamental support for prices. In the Bakken, the price differential for North Dakota light sweet crude versus the WTI benchmark was steady at -$3.42 per barrel. This relatively narrow discount indicates strong demand for Bakken crude, which is competitively priced and efficiently transported to refining markets. Global supply concerns were highlighted by a significant disruption in liquefied natural gas (LNG) flows. According to OilPrice.com,...

☀️Morning Wire·Jul 16

Rig Report

Bakken Rig Count Holds at 26 for Thursday

The number of active drilling rigs in North Dakota held steady at 26 on Thursday, July 16, 2026, according to live data from Bakken Wire. The count showed no day-over-day change, with zero new rigs added, zero rigs removed, and zero rigs moving locations since Wednesday. This stability follows a period of minor fluctuation. Compared to one week ago on July 9, the rig count is up by one unit. However, the current fleet of 26 rigs represents a decrease of one rig from the level seen one month ago on June 16, when 27 rigs were active. The rig count is a closely watched leading indicator for future oil production in the Bakken formation. A stable count in the mid-20s suggests operators are maintaining a consistent, though moderated, pace of drilling activity. This level of activity is a fraction of the historic highs seen during previous boom cycles but...

☀️Morning Wire·Jul 16

Daily Activity

Koda, Continental Secure New Permits; Hess Well Released from Confidential Status

The North Dakota Department of Mineral Resources approved two new drilling permits on Wednesday, July 15, 2026, according to the agency's daily activity report. The permits were issued to Koda Resources Operating LLC and Continental Resources Inc. Permit 42781 was granted to Koda Resources Operating LLC for the AMBER 3421-3BH well, located in Divide County within the Fertile Valley field. Permit 42782 was granted to Continental Resources Inc. for the LANGVED 5-2H well, located in Williams County within a field listed as 'Confidential'. The report also noted a change in confidential status for a previously filed well. Permit 41907, operated by Hess Bakken Investments II, LLC for the GO-WOLLA-157-97-3422H-4 well in SW SW Section 35: Township 157 North, Range 97 West, Williams County, was released from its confidential designation. This change allows for public disclosure of the well's production data, typically occurring six months after initial production begins. An additional...

☀️Morning Wire·Jul 16

Regulatory

India Hikes Diesel, Jet Fuel Export Taxes, Tightening Global Market

India has nearly doubled its export taxes on diesel and jet fuel, a move that analysts warn could tighten an already strained global refined products market and have implications for Bakken crude oil pricing. According to a notice from India’s Finance Ministry reported by OilPrice.com, the new levies are effective from Thursday, July 16, 2026, and will last through July 31. For the two-week period, the export duty on diesel has been raised to 15.50 rupees (approximately $0.16) per liter, up from 8.5 rupees. The tax on jet fuel exports was also hiked to 14.5 rupees a liter from 7.5 rupees. Concurrently, India lowered the export duty on gasoline to 2.5 rupees per liter from 4 rupees. The country reviews this policy every fortnight based on domestic and international market conditions. The policy shift comes as the global diesel market faces significant pressure. OilPrice.com cites a Russian ban on exports...

☀️Morning Wire·Jul 16

Global Markets

U.S. Russia Oil Sanctions Threat Could Affect Bakken via India Trade Talks

Fresh U.S. threats to impose sanctions on countries purchasing Russian oil could complicate ongoing trade talks between Washington and New Delhi, according to sources cited by Rigzone. The development, reported on July 15, introduces a new geopolitical friction point that could influence global crude markets. For Bakken operators, stable and predictable international trade relationships are critical. India has become a major global refiner, processing significant volumes of Russian crude under a price cap regime. Any U.S. move to tighten sanctions enforcement could disrupt these flows, potentially altering global supply patterns and price differentials. While the Bakken formation primarily serves the U.S. domestic market via pipeline to refining hubs, its crude is priced against global benchmarks like West Texas Intermediate (WTI). Geopolitical events that shift global supply and demand dynamics can impact these benchmarks, thereby affecting the realized price for North Dakota oil. The specific complication in U.S.-India talks, as reported,...

☀️Morning Wire·Jul 16

Global Markets

Global Market Strains Mount as Hormuz Crisis Intensifies

India has ordered ship owners to avoid deploying Indian nationals on vessels transiting the Strait of Hormuz, according to an advisory from its maritime authority issued Wednesday. The directive, citing a "heightened security situation," follows an attack earlier this week where one Indian crew member died after Iran struck two UAE-managed oil supertankers. The Joint Maritime Information Center maintains a "severe" threat level for the strait, warning of further hostile activity. The escalating crisis has effectively halted tanker traffic through the critical chokepoint. According to the International Energy Agency (IEA), transits have plunged to five-week lows after a brief rebound. IEA Executive Director Fatih Birol warned the global economy has just weeks before feeling severe impacts if the strait does not reopen fully and unconditionally. The United Nations' International Maritime Organization has declared navigation through the strait currently too dangerous. The market is already reacting. Oil prices have risen approximately...

☀️Morning Wire·Jul 16

Operator News

Global Tensions Spike as U.S.-Iran Clashes, India Bans Hormuz Crews

Escalating military clashes in a key global oil transit zone are tightening supply concerns and supporting crude prices, according to wire reports. The U.S. struck Iran for a fifth consecutive day overnight, with one attack hitting a sanctioned oil tanker near Iran's main export terminal, Rigzone reported. The intensifying conflict is directly impacting maritime operations. In a related development, India has directed ship owners, managers, and recruitment agencies to stop deploying the country's seafarers on vessels transiting the Strait of Hormuz, according to a separate Rigzone report. This move is likely to further complicate shipping logistics through the chokepoint, where traffic is already dwindling due to the skirmishes. These geopolitical tensions provided upward pressure on oil markets in Wednesday's session. Oil prices settled higher as the U.S. intensified strikes on Iran, heightening concerns over Middle East crude supplies, Rigzone reported. This price support emerged despite concurrent data showing weaker U.S....

☀️Morning Wire·Jul 16

Pipeline & Infrastructure

Asian Refiners Buy US Crude as Bakken Workforce Drops

At least 11 million barrels of U.S. crude were sold to Asian refiners late on Tuesday, according to traders cited by Rigzone. The report indicated more deals may follow, underscoring the continued global demand for light, sweet crude grades like those produced in the Bakken formation. The U.S. oil and gas extraction workforce declined from May to June, according to data from the U.S. Bureau of Labor Statistics reported by Rigzone. The drop in industry employment highlights ongoing operational and economic pressures facing producers. Analysts at BMI warned that the outlook for oil prices in the third quarter of 2026 is now highly uncertain, Rigzone reported. This volatility creates planning challenges for Bakken operators who must set capital budgets and drilling schedules. For North Dakota, the bulk sale of U.S. crude to Asia reinforces the critical importance of pipeline and export infrastructure. Bakken crude, which often travels to the Gulf...

☀️Morning Wire·Jul 16

🔆Midday Wire11:00 AM CST

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Oil Prices

WTI Holds Near $79 as EIA Reports Crude Inventory Draw

West Texas Intermediate crude oil held near $79 per barrel in midday trading Thursday, showing little change despite a reported drawdown in U.S. commercial inventories. WTI was trading at $79.02, down 13 cents from the previous settlement, while global benchmark Brent Crude was flat at $84.95, according to live price data. The U.S. Energy Information Administration reported a nearly 2 million barrel decrease in commercial crude oil stocks for the week ending July 10. Excluding the Strategic Petroleum Reserve, inventories now stand at 409.7 million barrels, according to Rigzone. This draw provided underlying support, countering broader market pressures and keeping prices in a narrow range. For Bakken producers, the price for local crude showed a modest improvement. The Bakken differential to WTI was recorded at -$3.42 per barrel, a key metric for netback pricing in the region. A narrower discount compared to recent weeks improves revenue for operators and royalty...

🔆Midday Wire·Jul 16

Regulatory

Iran Directs Houthis to Prepare Red Sea Attacks, Threatening Global Oil Flows

Iran has instructed Yemen's Houthi movement to stand ready to close the Bab el-Mandeb strait if the U.S. follows through on threats to strike Iranian power infrastructure, according to a report from OilPrice.com. Senior Iranian sources and a source close to the Houthis confirmed the group is awaiting orders and has positioned stockpiles of drones and missiles in Yemen. The Bab el-Mandeb Strait is a vital gateway to the Red Sea, accommodating roughly 7% of the world's energy trade. Any disruption could force shipping firms to redirect vessels around Africa, inflating transit costs and worsening global energy insecurity. This comes as traffic flows through the even more critical Strait of Hormuz are already severely compromised. For Bakken operators, renewed geopolitical risk in key global chokepoints traditionally supports higher international crude benchmarks like Brent. A sustained price increase can improve netbacks for North Dakota crude, but also heightens competition from other...

🔆Midday Wire·Jul 16

Global Markets

U.S. Reinforces Top Oil Producer Status Amid Global Supply, Demand Shifts

The United States solidified its position as the world's largest oil producer in 2025, a status underpinned by shale output that directly impacts the economics of the Bakken formation, according to the newly released 2026 Statistical Review of World Energy. Under the key metric of crude plus condensate production, U.S. output averaged a record 13.6 million barrels per day last year, representing 15.8% of global production. The year-over-year growth was significant, with U.S. production rising by about 351,000 barrels per day in 2025. This increase was one of the largest globally, behind only Saudi Arabia and Brazil, according to the data reported by OilPrice.com. The report underscores that U.S. production has been expanding for nearly two decades, a trend driven by shale plays like the Bakken. While the U.S. dominates production, the data highlights its continued role as the world's largest oil consumer. Most future demand growth is now projected...

🔆Midday Wire·Jul 16

Global Markets

Global Roundup: Eurasian Shifts, Somalia Wildcat, SLB Data Center Deal

A decisive election in Armenia is reshaping Eurasian energy trade routes, creating new options that bypass traditional powers Russia and Iran, according to an analysis from OilPrice.com. Armenia's June parliamentary election reaffirmed Prime Minister Nikol Pashinyan's authority, a result seen as a rejection of Kremlin-aligned opponents and a setback for Moscow's influence in the South Caucasus. With Russia weakened by the war in Ukraine and Iran preoccupied with other conflicts, a power vacuum is emerging in the region. This vacuum is critical for Asian economies seeking trade routes that avoid Russian or Iranian territory, the report states. China has heavily invested in the "Middle Corridor," a trans-Caspian route linking China to Europe via Central Asia, the Caspian Sea, the South Caucasus, and Turkey. A durable peace between Armenia and Azerbaijan would stabilize this corridor, which Chinese logistics firms are counting on, though it would likely advance on terms set substantially...

🔆Midday Wire·Jul 16

Operator News

Global Oil Market Volatility from Hormuz Conflict Impacts Bakken

Global oil market volatility stemming from conflict around the Strait of Hormuz is creating trading opportunities for major operators and logistical challenges for crude shipments, according to reports from Rigzone on Thursday. These developments impact the price environment for Bakken crude, which competes in global markets. TotalEnergies SE reported another quarter of bumper oil trading after the Iran war upended crude markets, Rigzone reported. Such volatility typically benefits the trading divisions of large, integrated operators. Analysts from Hartree Partners and Energy Aspects were examined by Rigzone regarding Hormuz crossings. The strategic waterway is a critical passage for Middle East crude exports. Further complicating logistics, India has directed ship owners, managers, and recruitment agencies to stop deploying the country's seafarers on vessels going through the Strait of Hormuz, according to Rigzone. India provides a significant portion of the world's maritime crew, and this restriction could pressure global shipping capacity and costs....

🔆Midday Wire·Jul 16

Pipeline & Infrastructure

Midday Roundup: Geopolitical Tensions Drive Oil Higher

Oil prices rose Tuesday as the U.S. intensified overnight strikes against Iran, heightening concerns over Middle East crude supplies, according to Rigzone. The move comes despite weaker U.S. fuel demand data, the outlet reported Wednesday. The escalation adds to global supply uncertainty that typically benefits Bakken producers, as higher crude prices improve the economics of production in North Dakota's tight oil formations. Industry analysts note that sustained price strength could encourage operators to boost drilling and completions, potentially increasing volumes carried by regional pipeline systems such as the Dakota Access Pipeline and others serving the Williston Basin. Separately, fresh U.S. threats to impose sanctions on countries buying Russian oil may complicate ongoing trade negotiations between Washington and New Delhi, per people familiar with the matter cited by Rigzone. The sanctions threat could tighten global crude supply further, as India is a major buyer of Russian barrels. Any reduction in Russian...

🔆Midday Wire·Jul 16

Production Data

Bakken Rig Count Holds at 26 as Oil Prices Show Modest Decline

The active rig count in North Dakota held steady at 26 on Thursday, July 16, 2026, as benchmark oil prices showed minimal movement, according to live Bakken data. West Texas Intermediate (WTI) crude was trading at $79.02 per barrel, down 13 cents on the day, while Brent crude was flat at $84.95. The current rig count of 26 represents a historically low level of drilling activity in the Bakken formation. Historically, the rig count is a leading indicator for future oil production, with a sustained increase in active rigs typically preceding a rise in output several months later. Conversely, a stable, low count like today's suggests operators are maintaining capital discipline and not significantly accelerating new well drilling programs. The price environment provides some context for the restrained activity. With WTI hovering near $79 and the Bakken crude differential at -$3.42 versus WTI, the realized price for Bakken producers is...

🔆Midday Wire·Jul 16

Workforce & Community

Bakken Rig Count Holds at 26 as Oil Prices Show Stability

The active drilling rig count in North Dakota's Bakken formation held steady at 26 on Thursday, July 16, 2026, signaling a continued baseline of operational activity that underpins regional employment and economic stability. This level, while a fraction of the historic highs seen during previous boom cycles, represents a consistent tempo of development in the current price environment. The workforce in the Bakken region is closely tied to this rig count, which directly drives demand for drilling crews, field service personnel, and related support jobs. A stable rig count near the mid-20s suggests a corresponding stabilization in oilfield employment, avoiding the sharp layoffs of downturns or the severe labor shortages of boom times. According to general industry analysis, this equilibrium allows for more predictable workforce planning for both operators and service companies. Supporting this steady operational footprint are current commodity prices. West Texas Intermediate crude traded at $79.02 per barrel,...

🔆Midday Wire·Jul 16

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI Slips Slightly as Bakken Differential Widens to -$3.42

West Texas Intermediate crude oil prices edged lower in Thursday afternoon trading, while the Bakken discount widened. WTI was trading at $79 per barrel, down $0.12 or 0.15 percent from the previous session, according to live price data. The international benchmark Brent crude held steady at $84.95. The price for Bakken crude at the Clearbrook, Minnesota, hub was at a discount of $3.42 per barrel versus WTI, indicating a slight softening in regional market strength compared to the U.S. benchmark. The marginal downward pressure on WTI occurred despite a reported drawdown in U.S. commercial inventories. According to Rigzone, citing the latest U.S. Energy Information Administration weekly petroleum status report, crude oil stocks, excluding the Strategic Petroleum Reserve, fell by almost 2 million barrels to 409.7 million barrels for the week ending July 10. In a separate report with implications for associated gas production in the Bakken, the EIA raised its...

🌅Afternoon Wire·Jul 16

Rig Report

North Dakota Rig Count Holds at 26, Activity Shifts to Mountrail County

The number of active drilling rigs in North Dakota's oil fields was unchanged on Thursday, holding at 26, according to live data tracked by Bakken Wire. The total reflects a day of balanced activity, with one new rig starting operations and another being released. Devon Energy Williston, L.L.C. added the sole new rig, the PRONGHORN 7, to a location in McKenzie County (151-102-27). This was offset by the removal of Petro-Hunt, L.L.C.'s T&S DRILLING 2 rig from Billings County (144-98-17). The net effect kept the statewide count flat. Drilling activity showed notable movement within the core of the Bakken formation. Two rigs changed locations, both moving to new sites in Mountrail County. Oasis Petroleum North America LLC moved its NABORS B26 rig to a Mountrail County location (157-92-7). Separately, Iron Oil Operating, LLC relocated its NOBLE 4 rig to another Mountrail County site (154-89-9). The current rig count of 26...

🌅Afternoon Wire·Jul 16

Operator News

Chevron Advances Major Iraq Deals, Seeks Hormuz Bypass Routes

Chevron is moving closer to securing two major oilfield development projects in Iraq, advancing negotiations that could represent one of its biggest upstream investments in years, according to a report from OilPrice.com. The company is set to sign two memoranda of understanding on Friday, July 17, related to the giant West Qurna 2 field and the Nassiriya project. The non-binding agreements will push forward talks on commercial terms for West Qurna 2, a southern Iraqi field currently producing about 460,000 barrels per day. Chevron entered exclusive negotiations for the field in February after Iraq nationalized it from Russia's Lukoil due to U.S. sanctions. The separate Nassiriya project, while smaller, offers significant exploration upside and follows an agreement in principle signed last year. Concurrently, Chevron is working with Iraq on technical studies for new export pipelines designed to bypass the volatile Strait of Hormuz, OilPrice.com reported. The company is part of...

🌅Afternoon Wire·Jul 16

Global Markets

Global Oil Demand Set for First Decline Since 2020, IEA Says

Global oil demand is projected to fall by around 1 million barrels per day (bpd) in 2026, marking the first annual decline since the COVID-19 pandemic in 2020, according to a recent International Energy Agency (IEA) report. The agency, citing a report dated July 10, blames the decline on geopolitical unrest across the Middle East stemming from the U.S.-Israeli-led war on Iran and the resulting closure of the Strait of Hormuz. The Strait of Hormuz is a critical chokepoint, normally transporting roughly 20% of the world's oil. Its closure for several months has disrupted a large proportion of global supply. The IEA's forecast assumes a ceasefire will support the strait's gradual reopening, but renewed attacks on tankers in July have significantly slowed traffic, casting doubt on lasting peace. "Renewed exchanges of fire in the Gulf this week highlight the risks of not reaching a lasting peace agreement, which is a...

🌅Afternoon Wire·Jul 16

Global Markets

Global Geopolitics, Investment Shifts Pose Risks and Context for Bakken

The reignition of Yemen's civil war threatens new disruption to global oil shipping lanes, according to a report from OilPrice.com on Thursday. The Houthi rebels, after a four-year unofficial truce, have re-entered conflict and issued threats to fight alongside Iran, potentially making key regional waterways "ever more impassable for the global oil trade." This escalation introduces a fresh layer of geopolitical risk to energy markets, which can influence the price environment for Bakken crude. Simultaneously, major oil companies are shifting long-term investment capital away from traditional regions due to prolonged Middle East instability. Eni CEO Claudio Descalzi told a parliamentary committee Thursday that geopolitics will remain a permanent risk, leading the industry to bet on Southeast Asia and Latin America. According to the OilPrice.com report, Southeast Asia is seeing a surge in final investment decisions for natural gas, potentially boosting regional output by roughly 18%. Eni and Malaysia's PETRONAS have...

🌅Afternoon Wire·Jul 16

Operator News

SLB, Liberty Form Data Alliance; TotalEnergies Posts Strong Oil Trading

Oilfield services giant SLB and Liberty have agreed to form a data center alliance, according to Rigzone. Gavin Rennick, president of SLB's New Energy and Industrial business, stated the partnership aims to "help developers accelerate deployment of new data center capacity." For Bakken operators, such industry moves toward advanced digital infrastructure could signal a continued focus on efficiency and data-driven operations, though the specific local impact is not detailed in the report. In corporate earnings, TotalEnergies SE reported another quarter of strong oil trading performance, Rigzone separately reported. The company cited market upheaval following the Iran war as a factor. Strong trading results from major international operators can reflect the volatile price environment that also dictates the economics for Bakken crude, influencing wellhead prices and operator revenues in North Dakota. Meanwhile, analysts are examining developments related to Hormuz crossings, a critical chokepoint for global oil shipments. Rigzone noted discussions with...

🌅Afternoon Wire·Jul 16

Pipeline & Infrastructure

Geopolitical Tensions in Strait of Hormuz Push Oil Prices Higher

Escalating military actions and shipping restrictions around a critical global oil transit route are providing support for crude prices, according to recent reports. The developments highlight the ongoing geopolitical risks that can influence the market for Bakken crude. The United States intensified strikes against Iran overnight, according to Rigzone. These skirmishes are occurring as vessel traffic through the Strait of Hormuz dwindles. Separately, India has directed ship owners, managers, and recruitment agencies to stop deploying the country's seafarers on vessels transiting the Strait of Hormuz, Rigzone reported. These events contributed to higher oil settlements on Wednesday. Oil prices rose as the U.S. intensified strikes on Iran, heightening concerns over Middle East crude supplies despite weaker U.S. fuel demand data, Rigzone reported. For Bakken producers in North Dakota, geopolitical premiums in global oil prices can provide temporary support for wellhead economics. The Bakken formation, a prolific shale play, produces light sweet...

🌅Afternoon Wire·Jul 16

Production Data

Bakken Rig Count Holds at 26 as Oil Prices Stabilize

North Dakota's active drilling rig count held steady at 26 for the week ending July 16, 2026, a level that suggests Bakken operators are maintaining capital discipline and a focus on efficiency rather than aggressive production growth. The current rig count is near historic lows for the basin, which has seen over 200 rigs operating during previous boom periods. The price environment offers a partial explanation for the restrained activity. West Texas Intermediate (WTI) crude was trading at $79 per barrel on Thursday, down slightly by 15 cents for the day. The local Bakken crude differential was $3.42 below WTI, putting the wellhead price for many producers near $75.58. Brent crude was unchanged at $84.95. Historically, the rig count is a leading indicator for future oil production, with a lag of several months between drilling activity and new wells coming online. A sustained rig count in the mid-20s is typically...

🌅Afternoon Wire·Jul 16