Tuesday, August 4, 2026

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Oil Prices

Oil Prices Slide Over 2% Amid Demand Concerns, Bakken Differential at -$3.42

Oil prices fell sharply in Tuesday morning trading, with West Texas Intermediate (WTI) crude down 2.89% to $78.02 per barrel. Brent crude fell 2.24% to $81.89. The price for Bakken crude at the wellhead, reflected in the Bakken differential, stood at -$3.42 versus WTI. Natural gas also declined, trading at $2.71. The price drop coincides with data pointing to weakening demand in a major economy. According to OilPrice.com, Germany's energy demand fell 1.9% in the first half of the year, with oil product consumption down 8%. Diesel consumption fell nearly 6%, and light heating oil consumption "plummeted by over 30%," the report stated. This decline is attributed to surging oil and gas prices impacting consumption. The current price pressure contrasts sharply with the market conditions that drove record second-quarter profits for global oil majors, as reported Tuesday. BP reported an underlying replacement cost profit of $5.7 billion for Q2 2026,...

☀️Morning Wire·Aug 4

Rig Report

Bakken Rig Count Holds Steady at 28

North Dakota's active drilling rig count held firm at 28 on Tuesday, August 4, according to live data from Bakken Wire. The tally showed no daily change, with zero new rigs added, zero rigs removed, and zero rigs moving locations since the prior report. The current level continues a period of relative stability for Bakken drilling activity. The rig count is up by four units compared to one week ago, when 24 rigs were active on July 28. It also represents a gain of three rigs from the count of 25 recorded one month ago on July 5. The Bakken formation is North Dakota's primary oil-producing region, and rig activity is a closely watched leading indicator for future production. An active rig represents a drilling crew working on a new well. The current count of 28 rigs is a fraction of the historic peaks seen during previous boom cycles but...

☀️Morning Wire·Aug 4

Daily Activity

Phoenix Operating, Kraken Lead Daily Bakken Activity

The North Dakota Department of Mineral Resources approved four new drilling permits on Monday, August 3, 2026, according to its daily activity report. All four permits were issued to Phoenix Operating LLC for a single pad in McKenzie County. The permits, numbered 43180 through 43183, are for the SETTER FED 22-27-34 1HF through 4HF wells, all located in the NW NE of Section 22-145N-98W within the Charlie Bob field. This represents a new four-well development project in the core of the Bakken formation. In other permitting activity, eleven existing permits were renewed. Burlington Resources Oil & Gas Company LP renewed six permits for the Kirklandfill and Morganfill wells (1A, 1B, 1C for each) in Section 21-150N-96W of McKenzie County's Pershing field. All six remain listed as 'Confidential'. The report also listed five new producing well completions, all operated by Kraken Operating, LLC. Two wells in McKenzie County posted particularly strong...

☀️Morning Wire·Aug 4

Global Markets

India's Oil Storage Build, OPEC+ Meeting Shape Global Crude Demand Outlook

India, the world's third-largest crude oil importer, is moving to significantly expand its oil storage capacity in response to supply disruptions from the Middle East, a development that could shape long-term demand for non-OPEC barrels like those from the Bakken. According to OilPrice.com, India's state-owned Oil and Natural Gas Corporation (ONGC) will build a new storage site at Mangaluru capable of holding about 13 million barrels of oil. Half of this capacity will be for strategic reserves, with the other half supporting commercial operations. This expansion is a direct response to supply shocks following the Iran war and disrupted flows through the Strait of Hormuz, which forced India to seek alternatives to Middle Eastern supply. The country's current maximum reserve capacity covers only eight days of national oil demand. The new project, with an estimated investment of $1.6 billion according to a June report cited by OilPrice.com, is aimed at...

☀️Morning Wire·Aug 4

Global Markets

Global Straits Traffic Low as Iran Tensions Offset Peace Talk Speculation

Tanker traffic through key global oil chokepoints remained low early this week, according to data cited by Reuters, as market skepticism over geopolitical peace talks contributed to ongoing price volatility. The subdued crossings underscore the persistent risk premium in global oil markets that directly impacts Bakken crude pricing. According to OilPrice.com, only a dozen tankers crossed the Bab el-Mandeb Strait on Monday, with most vessels operating transponders openly. In the Strait of Hormuz, crossings fell to three on Monday from seven the previous day, based on Kpler data. The report noted that earlier statements from President Donald Trump about renewed peace talks had initially pressured prices, but a reversal occurred as traders began doubting the claims' veracity. Doubts were reportedly strengthened by news from CNN, cited by OilPrice.com, that U.S. Central Command (CENTCOM) is seeking "new creative and unconventional ways to pressure and punish Iran." This suggests ongoing military preparations...

☀️Morning Wire·Aug 4

Operator News

Oil Prices Fall Amid Eased Tensions; Dominion Posts Profit Gain

Oil prices fell sharply Monday as renewed optimism over negotiations concerning the Strait of Hormuz eased fears of prolonged supply disruptions, according to Rigzone. The price drop reflects a market recalibration as geopolitical risk premiums diminish, directly impacting the revenue calculus for Bakken producers. Separately, Dominion Energy reported a year-over-year increase in its adjusted profit, Rigzone noted. The increase was driven by the power and gas utility's Virginia business. While not a Bakken operator, Dominion's performance as a major energy infrastructure and utility company is a indicator of broader energy sector financial health, which can influence investment sentiment across the industry. In other global energy news, Cuba suffered its fourth island-wide blackout in less than a month, Rigzone reported. Such persistent instability in national grids underscores the global demand for reliable energy sources, though the event's direct impact on Bakken operations is minimal. For North Dakota's oil and gas sector,...

☀️Morning Wire·Aug 4

Pipeline & Infrastructure

Pembina Profit Rises as Analysts Warn of Q3 Volatility

Pembina Pipeline Corp. reported higher second-quarter earnings, according to a financial update from the North American midstream company. For the quarter, Pembina posted CAD 415 million in net income adjusted for nonrecurring items, a year-on-year increase, Rigzone reported on August 3. The company is a key operator in the Williston Basin, handling crude oil, natural gas, and natural gas liquids through its infrastructure network. Strong midstream earnings can indicate robust volume throughput, which is a positive signal for Bakken producers reliant on these systems to move product to market. Separately, analysts are warning of turbulent conditions ahead for the oil market. BMI analysts stated the near-term outlook is "highly uncertain," forecasting that the third quarter is set for extreme volatility, Rigzone reported. Such price volatility directly impacts the planning and economics for Bakken operators, influencing decisions on drilling and completion activity. In regulatory news, the American Petroleum Institute (API) announced...

☀️Morning Wire·Aug 4

Regulatory

BP Completes German Refinery Sale as Part of Capital Discipline Focus

BP has completed the sale of a German refinery to Klesch, according to a report from Rigzone. The transaction supports the company's focus on disciplined capital allocation, Rigzone reported. For Bakken operators and the North Dakota oil industry, such moves by international majors signal a continued emphasis on financial discipline and streamlining operations. While the asset sale is overseas, the underlying strategy of optimizing portfolios and reducing costs is a consistent theme across the global oil and gas sector. Companies operating in the Bakken formation are also navigating a landscape that demands capital efficiency. The reported expectation that this sale will lower BP's underlying operating expenditure by around $1 billion highlights the intense focus on managing costs. This pressure resonates in North Dakota, where operators balance production growth with shareholder returns and operational efficiency. The broader context of majors divesting non-core assets can indirectly influence investment flows and strategic priorities....

☀️Morning Wire·Aug 4

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Plunges Over 5% Amid Global Demand Fears, Bakken Differential Holds

Crude oil prices experienced a steep selloff on Tuesday, with both major benchmarks falling more than five percent. West Texas Intermediate (WTI) crude was trading at $75.96 per barrel, down $4.38 (-5.45%), while Brent crude fell to $79.40, a drop of $4.37 (-5.22%), according to live price data. The price for Bakken crude at the wellhead was trading at a discount of $3.42 per barrel versus WTI. The sharp decline appears linked to growing concerns over weakening industrial demand in China, a major global oil consumer. According to a report from OilPrice.com, iron ore prices hit a one-year low as a construction slump and soft steel demand in China deepened. Analysts at UBS noted that fundamentals for the steelmaking material are deteriorating, with supply lifting while demand remains soft, reinforcing expectations for a growing surplus. This signals potential weakness in broader industrial and manufacturing activity, which weighs on oil demand...

🔆Midday Wire·Aug 4

Pipeline & Infrastructure

Williams Announces $5.5B Acquisition of Momentum Midstream

Williams has agreed to acquire Momentum Midstream for $5.5 billion, according to a report from Rigzone. The deal was announced Tuesday, August 4, 2026. The transaction is described as one of "the most significant private midstream transactions in the U.S.," Rigzone reported. The assets are being divested by EnCap Flatrock, a private equity firm focused on energy infrastructure. While specific asset locations were not detailed in the report, a transaction of this scale is significant for the broader midstream sector that serves oil and gas producing regions. For Bakken operators, consolidation among large midstream companies can impact market dynamics for natural gas gathering, processing, and transportation. Major acquisitions often lead to expanded or optimized pipeline and processing networks. In a basin like the Bakken, which produces significant associated natural gas alongside its crude oil, efficient midstream infrastructure is critical for operators to manage costs and meet regulatory requirements for gas...

🔆Midday Wire·Aug 4

Global Markets

Oil Prices Drop Near $80 as Iran Deal Hopes Rise; BP Sells US Biogas Unit

Crude oil prices extended losses Tuesday, with ICE Brent falling back to around $80 per barrel, according to OilPrice.com. The drop followed comments from U.S. Treasury Secretary Scott Bessent and Qatar’s Foreign Ministry signaling progress on a potential draft agreement between the U.S. and Iran, buoying hopes for a diplomatic resolution to the conflict. The price decline coincides with renewed political scrutiny on oil company profits. President Donald Trump criticized U.S. refiners, specifically calling out ExxonMobil and Chevron for making "too much money" and ordering them to lower retail fuel prices. The average U.S. gasoline pump price was $4.08 per gallon as of August 4, up 30% from a year ago, OilPrice.com reported. In corporate moves, BP announced it will offload its U.S. biogas business, Archaea, which it acquired for $4.1 billion in 2022. The sale is part of a broader restructuring under new CEO Meg O'Neill to focus on...

🔆Midday Wire·Aug 4

Operator News

Global Energy Developments Highlight Bakken Market Pressures

The prospect of a short-term deal between the U.S. and Iran appeared to be gaining traction on Tuesday, according to a report from Rigzone. Such a development could potentially impact global crude supplies and pricing, a key factor for Bakken producers who compete in international markets. Separately, Saudi Aramco reported a 33 percent increase in its second-quarter profit, Rigzone noted. The state oil giant benefited from a war-driven surge in oil prices. For operators in the Williston Basin, high global prices can improve margins, but also increase competition from major international producers flush with cash. Further influencing the global flow of oil, Aramco is looking at options to expand its oil export capacity, Rigzone reported. This consideration comes as the Iran war disrupts flows through the Strait of Hormuz and Houthi rebels threaten shipments in the Red Sea. These disruptions have tightened global supply routes, supporting prices but also creating...

🔆Midday Wire·Aug 4

Pipeline & Infrastructure

Crescent Energy Raises Output Forecast; BP Hikes Dividend

Crescent Energy has increased its full-year production forecast, according to Rigzone. The company now expects annual output to range from 327,000 to 335,000 barrels of oil equivalent per day (boed), with oil comprising 40 to 42 percent of that total. For the Bakken, this signals continued capital discipline and focus on oil-weighted production from major operators with assets in the region, which can support steady midstream throughput. In other corporate news, BP PLC announced a four percent increase in its quarterly dividend, Rigzone reported. The dividend was raised to 8.66 cents per share. The company cited higher oil prices offsetting lower upstream and refining volumes. Such shareholder returns by a global major reflect the current commodity price environment, which benefits Bakken producers and royalty owners through improved cash flow and potential for increased activity. On the infrastructure front, Sempra has delayed the completion of a Mexican LNG project, according to...

🔆Midday Wire·Aug 4

Regulatory

Analysts See Fragile Global Outlook; Cuba Hit by Blackouts

BMI analysts outlined that they continue to believe a broader diplomatic understanding between the U.S. and Iran remains achievable during this quarter but warned that the outlook remains "highly fragile," according to Rigzone. Any shifts in U.S.-Iran relations have direct implications for global crude oil supply, as a potential deal could bring more Iranian barrels to the market, influencing the price benchmarks against which Bakken crude is sold. Separately, Cuba was hit by its fourth island-wide blackout in less than a month, Rigzone reported. While not a direct market mover, chronic instability in regional power grids can contribute to broader geopolitical uncertainty and, in extreme cases, affect refinery operations or shipping in the Caribbean basin. For Bakken operators and royalty owners, the primary takeaway is the continued emphasis on external market volatility. The North Dakota oil patch is deeply connected to global crude prices, which are sensitive to geopolitical developments....

🔆Midday Wire·Aug 4

Production Data

Bakken Rig Count Holds at 28 as Oil Prices Slide Sharply

North Dakota's active drilling rig count held steady at 28 for the latest reporting period, according to live Bakken Wire data. The figure underscores a prolonged period of capital discipline by operators even as crude oil prices experienced a significant downturn in Tuesday's trading. West Texas Intermediate (WTI) crude was trading at $75.96 per barrel, down $4.38 or 5.45% for the day. The international Brent benchmark fell to $79.40, a drop of $4.37. The price for Bakken crude at the wellhead is typically discounted against WTI; the current Bakken differential is -$3.42. Natural gas prices were recorded at $2.67 per MMBtu. The current rig count of 28 is near historic lows for the Bakken formation in the modern shale era. The rig count is a leading indicator of future oil production, as it reflects the number of drilling crews actively working to bring new wells online. A sustained low count...

🔆Midday Wire·Aug 4

Workforce & Community

Bakken Rig Count Holds at 28 Amid Sharp Oil Price Decline

The number of active drilling rigs in North Dakota held steady at 28 on Tuesday, August 4, 2026, even as global oil prices experienced a significant sell-off. West Texas Intermediate (WTI) crude traded at $75.96, down $4.38 or 5.45% for the day, according to live Bakken data. The current rig count, a key indicator of oilfield activity, reflects a sustained but historically modest level of drilling operations in the Bakken formation. The direct relationship between rig count, employment, and local economic health means this stability is a critical factor for western North Dakota communities. However, the sharp drop in oil prices introduces uncertainty for future activity levels. Historically, the Bakken region's workforce, housing market, and municipal revenues are tightly coupled to the pace of oil and gas development. A higher rig count typically translates to increased demand for oilfield service workers, truck drivers, and support staff, bolstering employment and putting...

🔆Midday Wire·Aug 4

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Plunge Over 6% as Iran Peace Deal Hopes Fuel Selloff

Crude oil prices posted steep losses Tuesday, with West Texas Intermediate (WTI) plunging 6.16% to settle at $75.39 per barrel, according to live price data. The selloff was driven by market speculation that a U.S.-Iran agreement to reopen the strategic Strait of Hormuz could be imminent. Brent crude fell 5.87% to $78.85 per barrel, while the Bakken crude differential widened to a discount of $3.42 versus WTI. Natural gas prices also dropped, falling $0.10 to $2.68 per MMBtu. The price collapse follows heightened rhetoric from U.S. officials. Treasury Secretary Scott Bessent suggested a deal could come Tuesday or Wednesday, while President Donald Trump called an agreement to reopen the strait and denuclearize Iran "imminent," according to OilPrice.com. However, Iran has denied holding direct talks with Washington, saying negotiations are occurring through mediators in Oman. The potential for a deal has overshadowed bearish U.S. inventory data. The American Petroleum Institute estimated...

🌅Afternoon Wire·Aug 4

Rig Report

North Dakota Rig Count Holds at 28, Up 4 from Previous Week

North Dakota's active drilling rig count held steady at 28 on Tuesday, August 4, according to live data from Bakken Wire. The total showed no day-over-day change, with no new rigs added, removed, or relocated since Monday's report. The current figure represents a notable increase from levels seen just one week prior. On July 28, 2026, the state reported 24 active rigs, meaning the fleet has grown by four units over the past seven days. Compared to one month ago, activity is also higher; the count stood at 25 rigs on July 5, marking a net gain of three rigs over the four-week period. The stability at 28 rigs continues a pattern of modest growth in the Williston Basin's drilling activity this summer. Rig counts are a closely watched leading indicator of future oil production, as each active rig represents a crew drilling new wells. The current level, while significantly...

🌅Afternoon Wire·Aug 4

Pipeline & Infrastructure

Williams Announces $5.5 Billion Acquisition of Momentum Midstream

Williams has agreed to acquire Momentum Midstream for $5.5 billion, according to a report from Rigzone. The financial publication noted the divestment by private equity firm EnCap Flatrock is one of "the most significant private midstream transactions in the U.S." While specific asset details were not provided in the source report, large-scale midstream mergers typically have significant implications for oil and gas producers. For Bakken operators, industry consolidation can lead to changes in pipeline access, gathering fees, and overall midstream service competition in the region. The acquisition underscores continued investment and confidence in U.S. midstream infrastructure. A stable and expanding pipeline network is critical for Bakken producers to efficiently transport oil and natural gas to market. Major transactions often result in expanded capital for system upgrades and expansions, which can benefit shippers across the Williston Basin. The reported $5.5 billion price tag highlights the substantial value placed on midstream assets...

🌅Afternoon Wire·Aug 4

Global Markets

China's EV Growth, Lithium Race Reshape Global Oil Dynamics

China's accelerating electric vehicle adoption is now displacing an estimated 1.35 million barrels of oil per day, according to an analysis from OilPrice.com. This volume represents more than 1% of total global oil consumption and is equivalent to roughly 6% of China's annual crude imports, a shift that is permanently altering global demand fundamentals. The displacement figure, calculated for the first half of 2026, stems from the estimated 44 million electric cars on China's roads by the end of 2025. OilPrice.com reported that this scale of displacement is already equivalent to close to one-tenth of all crude that normally moves through the Strait of Hormuz, a key global chokepoint. While not neutralizing supply shocks, this growing demand destruction can soften the impact of geopolitical disruptions on the global market. Concurrently, a geopolitical race over lithium, the critical mineral for EV batteries, is intensifying. China currently controls one quarter of the...

🌅Afternoon Wire·Aug 4

Global Markets

Global Tensions Drive Oil Price Surge, Aramco Profits Jump 33%

Geopolitical instability in the Middle East continues to underpin global oil markets, with Saudi Aramco reporting a 33 percent surge in second-quarter profit, according to Rigzone. The state oil giant benefited directly from a war-driven increase in crude prices, a dynamic that affects benchmark prices for Bakken crude. The primary source of that volatility remains the ongoing conflict between the U.S., Israel, and Iran. Pakistan has emerged as a key mediator in the war, with its leaders raising the country's diplomatic profile, according to a report from OilPrice.com. Foreign Affairs magazine went so far as to state "Pakistan Won the War in Iran," the source noted. Despite a Pakistan-brokered truce, the Islamabad Memorandum of Understanding, unraveling in mid-July 2026, exploratory mediation efforts continue with Chinese backing. Within Iran, decision-making has shifted toward a security-dominated structure centered on the Islamic Revolutionary Guard Corps (IRGC) following the assassination of Supreme Leader Ali...

🌅Afternoon Wire·Aug 4

Operator News

Aramco Eyes Export Boost as Crescent Raises Output, Sempra Delays LNG

Saudi Aramco is evaluating options to expand its oil export capacity amid ongoing supply disruptions in the Middle East, according to Rigzone. The move comes as the war in Iran disrupts flows through the Strait of Hormuz and Houthi rebels threaten Red Sea shipments. Any significant increase in Saudi export capacity could influence global crude benchmarks, which are critical for pricing Bakken crude. Domestically, Crescent Energy has raised its full-year production forecast, Rigzone reported. The company now expects output to range from 327,000 to 335,000 barrels of oil equivalent per day (boed), with oil comprising 40-42 percent of that total. While not a Bakken-focused operator, Crescent's increased guidance reflects broader industry confidence in U.S. onshore production, which can affect regional pipeline and market dynamics. In a separate development, Sempra has delayed the substantial completion of a Mexican liquefied natural gas (LNG) project to the fourth quarter of 2026, with sales...

🌅Afternoon Wire·Aug 4

Pipeline & Infrastructure

BP Raises Dividend Amid Fragile Geopolitical Outlook

BP PLC announced a four percent increase to 8.66 cents in its quarterly dividend per share, according to Rigzone. The increase, reported Tuesday, was attributed to higher oil prices offsetting lower upstream and refining volumes. The dividend hike from a major integrated operator like BP is a positive signal for shareholder returns across the energy sector, which includes Bakken producers. Stronger cash flows at the corporate level can support continued investment in key basins. However, the broader market outlook supporting those prices remains uncertain. Analysts at BMI warned that the geopolitical outlook is "highly fragile," Rigzone reported. They noted a belief that a broader diplomatic understanding between the U.S. and Iran is achievable this quarter, but the situation is unstable. Such geopolitical tensions, particularly involving major oil-producing regions, directly impact the price benchmarks that Bakken crude is priced against. Volatility or a sudden diplomatic shift can alter revenue projections for...

🌅Afternoon Wire·Aug 4

Production Data

Bakken Rig Count Holds at 28 as Oil Prices Slide Sharply

North Dakota's oil industry is navigating a sharp decline in crude prices while maintaining its current drilling pace, according to live market data. The state's active rig count held steady at 28 on Tuesday, even as West Texas Intermediate (WTI) crude fell $4.95 to settle at $75.39 per barrel. The Bakken oil price differential, the discount at which local crude trades compared to the WTI benchmark, was $3.42. This puts the implied Bakken wellhead price at approximately $71.97. The global Brent crude benchmark also fell sharply, dropping $4.92 to $78.85. Natural gas prices were reported at $2.68 per MMBtu. The stability of the rig count amid a price correction presents a key data point for the North Dakota production outlook. The rig count is a leading indicator of future oil output, as new wells drilled today will typically begin producing several months later. A sustained high count suggests operators are...

🌅Afternoon Wire·Aug 4