Thursday, August 6, 2026

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Oil Prices

Oil Prices Steady as China's Refiner Shift Highlights Supply Concerns

Global oil benchmarks were mixed in early Thursday trading, with West Texas Intermediate (WTI) crude holding steady near $75 per barrel. WTI was priced at $75.2, down 2 cents, while the international benchmark Brent crude edged up 19 cents to $79.64, according to live price data. North Dakota's Bakken crude traded at a discount of $3.42 per barrel to WTI. The relative price stability belies ongoing supply chain tensions that are reshaping global crude flows. According to a report from OilPrice.com, China’s top refiner, Sinopec, has significantly increased purchases of Russian Far East crude for the third quarter. The state-run giant has acquired 30-40 shipments, or 241,000 to 320,000 barrels per day, of Russia's ESPO blend for delivery between July and September. Analysts cited by OilPrice.com indicate the move is a strategic pivot toward supply certainty. "Rather than broad-based import growth, demand is shifting towards barrels with greater delivery certainty...

☀️Morning Wire·Aug 6

Rig Report

North Dakota Rig Count Holds at 30 for Thursday, August 6

North Dakota's active drilling rig count held steady at 30 for Thursday, August 6, according to Bakken Wire live data. The count showed no change from the previous day, with zero new rigs added, zero rigs removed, and no rigs moving location. The current level represents an increase of three rigs from one week ago, when the state reported 27 active rigs on July 30. The trend over the past month shows a more significant build, with the count up by six rigs from the 24 rigs active on July 7. The stability in the state's drilling activity comes amid broader energy infrastructure developments that could impact future market dynamics for U.S. producers, including those in the Bakken. In related news, Energy Secretary Chris Wright said on Wednesday that another temporary extension of Jones Act waivers for fuel shipping is "quite likely to happen," according to Rigzone. Such waivers can...

☀️Morning Wire·Aug 6

Daily Activity

Continental Resources Secures Lone New Permit in Divide County

North Dakota's Department of Mineral Resources (DMR) approved one new drilling permit in filings from Wednesday, August 5, 2026, according to the agency's daily activity report. Continental Resources, Inc. was granted permit 41137 for the SHADOWCAT 1-31H well, located in Divide County's "CONFIDNETIAL" field. The report shows a continued, highly focused level of permitting activity among Bakken operators. The single new approval follows a pattern of measured, strategic additions to drilling inventories. Beyond new permits, the DMR report listed several updates to previously filed permits, indicating ongoing project development. Silver Hill Energy Operating, LLC updated the status of its K&L HEGSTAD SOUTH W 158-92-10-22- 1MBHX well in Mountrail County's Cottonwood field, according to filing 42078. The most notable administrative activity came from Phoenix Operating LLC. The operator filed three separate updates for wells in Williams County's Skabo field, according to the DMR. The filings, 42087, 42088, and 42089, are for...

☀️Morning Wire·Aug 6

Regulatory

Texas Regulator, University Launch Oilfield Inspector Training Program

The Railroad Commission of Texas (RRC) has teamed up with a university to launch a new training program for oilfield inspectors, according to a report from Rigzone. The industry news source reported the development on Wednesday, August 5, 2026. In its coverage, Rigzone noted that the RRC itself stated "The new program represents a major advancement for the RRC." Specific details on the university partner or the curriculum were not provided in the summary. For operators in North Dakota's Bakken formation, regulatory developments in major producing states like Texas are often closely monitored. Texas is a leader in U.S. oil and gas production and its regulatory approaches can influence standards and best practices nationwide. A focus on enhanced inspector training in Texas highlights an industry-wide priority for a skilled regulatory workforce capable of overseeing modern, complex operations. The Bakken industry, regulated by the North Dakota Industrial Commission's Oil and Gas...

☀️Morning Wire·Aug 6

Global Markets

Global Supply Shifts, Price Risks Emerge from Mid-East Crisis

The United Arab Emirates has restored its crude oil exports to pre-crisis levels, shipping more oil out of the Strait of Hormuz than any other Gulf producer in June and July despite a blockade, according to vessel-tracking data compiled by Bloomberg and reported by OilPrice.com. The UAE, which left OPEC on May 1, achieved a record production of 4.1 million barrels per day in June by using workarounds like shipping in "dark mode," maximizing an onshore pipeline, and loading crude outside the chokepoint at Fujairah. Meanwhile, Nigeria is positioning to capitalize on global supply shifts, expecting to attract $30 to $50 billion in investment for 22 offshore oil and gas projects over the next five years, its Upstream Petroleum Regulatory Commission said. The country's crude production rose to 1.56 million bpd in June, its highest since April 2020, and it aims to reach 2 million bpd in the near term,...

☀️Morning Wire·Aug 6

Operator News

U.S. Diesel Exports Set Record, Refiner Phillips 66 Reports Strong Profit

U.S. diesel exports hit a record high last week, tightening domestic fuel inventories as the global market grapples with supply shortages, according to data cited by OilPrice.com. The Energy Information Administration reported exports reached 1.9 million barrels per day, breaking a previous record set in the spring. Concurrently, domestic diesel production fell and inventories dropped to levels 12% below the five-year average. Bloomberg reported stockpiles are now at their lowest since 1996, as fuel sellers have been drawing down inventories for five consecutive weeks of high export volumes. The tight market is being driven by strong demand from Europe, where local refinery capacity has declined, and by the ongoing energy crisis in the Middle East, according to OilPrice.com. This comes as the U.S. refining sector enters its typical maintenance season, which runs from August to October, potentially limiting near-term production boosts. The supply-demand imbalance presents a mixed picture for Bakken...

☀️Morning Wire·Aug 6

Pipeline & Infrastructure

Global Energy Shifts Highlight Bakken Market Context

Occidental Petroleum reported a significant quarterly profit increase, a performance that underscores the continued financial strength of large operators with global portfolios, according to Rigzone. The company posted $2.4 billion in adjusted net profit for the second quarter, more than double the $1.1 billion from the prior three-month period, which it attributed to higher oil prices. For Bakken operators, the robust earnings of a major player like Occidental reflect the sustained commodity price environment that also benefits North Dakota's independent producers. Strong balance sheets at large firms can support continued investment in core basins, including the Williston. In global shipping news, the United Arab Emirates has become the leading shipper of oil through the strategic Strait of Hormuz over the past two months, Rigzone reported. This activity provides a critical buffer for global oil markets amid an ongoing energy crisis. The ability to move crude through this key chokepoint helps...

☀️Morning Wire·Aug 6

Regulatory

Geopolitical Shifts Pressure Oil Prices, Impacting Bakken Economics

Oil prices extended their decline for a third consecutive session on Wednesday, pressured by market optimism over a potential shipping agreement for the critical Strait of Hormuz, according to Rigzone. The news of ongoing talks contributed to bearish sentiment, overshadowing other geopolitical risks. Simultaneously, a separate Rigzone report highlighted the efficacy of US sanctions, noting a growing flotilla of idling Iranian oil tankers gathering off Iran's coast. This effective blockade restricts a significant volume of global supply from reaching the market. For Bakken operators, these conflicting geopolitical signals create a volatile pricing landscape. Any agreement that secures the free flow of oil through the Strait of Hormuz—a vital chokepoint for global seaborne crude—typically adds downward pressure to global benchmarks like West Texas Intermediate (WTI), to which Bakken crude is closely linked. Lower realized prices directly impact the profitability of wells across the Williston Basin and influence drilling and completion budgets....

☀️Morning Wire·Aug 6

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

WTI Jumps Above $77 as Bakken Discount Narrows

Oil prices surged in midday trading Thursday, August 6, with West Texas Intermediate (WTI) crude climbing $2.53 to $77.75 per barrel, a gain of 3.36%. The global benchmark Brent crude rose even more sharply, adding $3.05 to reach $82.50 per barrel, according to live price data. The rally occurred despite news that Saudi Arabia cut its main crude oil price, as reported by Rigzone. The move by the world's largest exporter often signals concerns over softer demand or increased competition for market share. Rigzone noted the price adjustment comes as some Persian Gulf producers continue to send barrels through the Strait of Hormuz, a key global chokepoint. For Bakken producers, the positive price move is amplified by a relatively narrow regional discount. The Bakken differential, the price adjustment applied to North Dakota crude versus the WTI benchmark, was recorded at -$3.42 per barrel. This means Bakken-quality crude is pricing near...

🔆Midday Wire·Aug 6

Global Markets

Global Demand Weakness, Nuclear Shift Challenge Bakken's Price Outlook

A muted global oil price response to the closure of the Strait of Hormuz signals a deeper economic problem of weak energy demand, according to an analysis from OilPrice.com. This environment of low affordability poses a challenge for Bakken producers who rely on robust crude prices to justify drilling in the formation's cost-sensitive plays. The report notes that the recent price spike following the Strait's closure was a "mini spike," and that inflation-adjusted spikes in the past would appear higher. It points to declining indicators of energy consumption, such as worldwide car sales peaking in 2017 and U.S. new home sales falling to 678,000 in 2025 from a record 1,283,000 in 2005, as signs that "people are getting poorer" and demand for oil is softening. For North Dakota operators, this suggests that even supply disruptions may not provide the sustained price lifts seen in previous eras. Concurrently, a major shift...

🔆Midday Wire·Aug 6

Global Markets

Global Energy Roundup: Argentina's Shale Growth, Angola Discovery, China's Offshore Wind

Argentina's Vaca Muerta shale play continues to show rapid production growth, reshaping energy security in the Americas, according to an OilPrice.com report. For June 2026, Argentina's total oil production was 868,763 barrels per day, a 12.6% increase from June 2025. Shale oil from the Vaca Muerta formation accounted for 71% of that total, or 616,490 barrels per day. This represents a 28% year-over-year increase in Vaca Muerta petroleum output. The data shows unconventional production now dominates Argentina's energy mix. Shale oil output hit a record 626,077 barrels per day in May 2026. Meanwhile, conventional oil production is in steep decline, falling 13% year-over-year to 252,273 barrels per day in June 2026. A similar trend is seen in natural gas, where shale gas made up 70% of the country's 5.4 billion cubic feet per day output in June. The growth underscores the Vaca Muerta's potential as a major global shale play...

🔆Midday Wire·Aug 6

Operator News

Upstream M&A Slows in Q2 as Midstream, Global Markets Show Strength

U.S. upstream merger and acquisition activity slowed in the second quarter of 2026, according to a new report from Enverus Intelligence Research. The analysis, reported by Rigzone, indicates a cooling period for corporate consolidation and asset deals among oil and gas producers. For Bakken operators, a slowdown in M&A can signal a period of operational focus and capital discipline over aggressive portfolio expansion. It may reflect a more cautious approach to deal-making amid evolving commodity price forecasts and regulatory landscapes specific to the Williston Basin. In related energy sector news, refining and midstream giant Phillips 66 posted a significant profit increase. Rigzone reported the company saw rises in refining margins, plant utilization, and natural gas liquids (NGL) pipeline and fractionation volumes. Strong NGL infrastructure performance is a positive signal for Bakken producers, whose output often includes valuable NGLs that require transportation and processing. Meanwhile, global crude oil markets continue to...

🔆Midday Wire·Aug 6

Pipeline & Infrastructure

Global Energy Shifts Highlight Bakken's Market Context

Occidental Petroleum reported a significant surge in quarterly profit, a performance linked to higher oil prices that also benefit Bakken producers. The company posted $2.4 billion in adjusted net profit for the second quarter, up from $1.1 billion in the prior three-month period, according to Rigzone. While Occidental's operations are not centered in the Bakken, the results underscore the continued financial strength of oil-focused independents in the current price environment, which supports investment and production across major shale plays including North Dakota's. Global oil shipping and energy transition efforts are also making headlines, providing context for the Bakken's position in worldwide markets. The United Arab Emirates has become the leading shipper of oil through the critical Strait of Hormuz over the past two months, Rigzone reported. This flow provides a buffer for global markets amid supply concerns, helping to set the international price benchmarks against which Bakken crude is sold....

🔆Midday Wire·Aug 6

Regulatory

Oil Prices Drop on Strait of Hormuz Talks; Iranian Tankers Idle

Oil prices extended losses for a third consecutive day on Wednesday as optimism over a potential shipping agreement for the Strait of Hormuz weighed on the market, according to Rigzone. The development comes amid reports that a U.S. blockade of Iranian oil exports is showing tangible effects. A growing flotilla of Iranian oil tankers is gathering idly off the country's coast, Rigzone reported, signaling that U.S. enforcement actions are successfully restricting Tehran's ability to move its crude to global markets. Despite this supply-side pressure, prices fell as traders focused on the potential for de-escalation in a key global chokepoint. The Strait of Hormuz is a critical maritime passage for global oil shipments, and any agreement to secure shipping lanes can alleviate risk premiums baked into crude prices. For Bakken producers, lower global benchmark prices directly impact the wellhead economics for North Dakota light sweet crude, potentially squeezing margins. The simultaneous...

🔆Midday Wire·Aug 6

Production Data

Bakken Rig Count Holds at 30 as Oil Prices Surge

North Dakota's active drilling rig count held steady at 30 on Thursday as global oil prices posted significant gains, according to live Bakken Wire data. West Texas Intermediate (WTI) crude surged $2.53 to settle at $77.75 per barrel, a 3.36% increase, while the international Brent benchmark rose $3.05 to $82.50. The current rig count of 30 represents the core level of drilling activity sustaining the state's oil output. The Bakken price differential—the discount at which Bakken crude trades against WTI—was recorded at -$3.42. Natural gas prices were reported at $2.65 per million British thermal units (MMBtu). Historically, the number of active drilling rigs is a leading indicator for future oil production, with a typical lag of several months between new well spuds and first oil. The current count of 30 rigs is substantially lower than the peak levels seen in the early 2010s Bakken boom, which regularly exceeded 200 rigs...

🔆Midday Wire·Aug 6

Workforce & Community

Bakken Rig Count Holds at 30 as Oil Prices Surge

The number of active drilling rigs in North Dakota held steady at 30 for the latest reporting period, according to Bakken Wire live data. This count continues to reflect a period of significantly reduced drilling activity compared to historical peaks, even as oil prices saw a sharp rally with WTI crude rising 3.36% to $77.75 per barrel. The stable, low rig count indicates a consolidated and disciplined operational pace among Bakken producers. This level of activity is a primary driver for direct oilfield employment, supporting a workforce that is a fraction of its former size but likely more stable. With fewer new wells being drilled, demand for drilling crews, fracking crews, and related field services remains contained. For local communities across the Williston Basin, this environment suggests a period of adjustment rather than rapid growth or decline. Housing markets, which experienced extreme volatility during previous boom-and-bust cycles, are likely seeing...

🔆Midday Wire·Aug 6

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Surge Over $3 as European Energy Crisis, Saudi Pricing Moves Rattle Markets

Crude oil prices rallied sharply on Thursday, with the U.S. benchmark gaining over $3 a barrel, driven by a deepening energy crisis in Europe and ongoing supply-side developments from major producers. West Texas Intermediate (WTI) crude for September delivery settled at $78.35 per barrel, a gain of $3.13 or 4.16%. The global benchmark, Brent crude, rose $4.25 to close at $83.70 per barrel, according to live price data. The price surge coincides with reports of severe electricity shortages in Europe triggered by a prolonged heatwave and drought. According to a report from OilPrice.com, intense summer conditions are crippling nuclear and hydropower generation across the continent. Hungary was forced to shut down its Paks nuclear power plant over the weekend due to critically low water levels in the Danube River, cutting 40% of the country's electricity generation overnight and causing regional power prices to spike to €500 per megawatt-hour. France has...

🌅Afternoon Wire·Aug 6

Rig Report

North Dakota Rig Count Holds at 29 After Single Rig Release

North Dakota's active drilling rig count remained unchanged at 29 on Thursday, August 6, despite one rig being released from a wellsite. According to live rig data, there were no new rigs added and no rigs moved to new locations. The sole rig removed from the tally was the NABORS B27, operated by Silver Hill Energy Operating, LLC. The rig was released from location 157-97-35 in Williams County. While flat for the day, the current rig activity level represents an increase from recent historical benchmarks. The count is up by two rigs compared to one week ago, on July 30, 2026, when 27 rigs were active. The gain is more pronounced over the past month, with five more rigs working now than on July 7, 2026, when the state reported 24 active drilling units. The stability in the rig count comes as operators in the Bakken formation and wider Williston...

🌅Afternoon Wire·Aug 6

Global Markets

Global Supply Crunch Drives Record U.S. Diesel Exports, Supports Bakken Crude

U.S. distillate exports surged to a record 1.9 million barrels per day last week as a global supply crunch deepened, creating a supportive backdrop for crude oil production from regions like North Dakota's Bakken. According to OilPrice.com, shipments have exceeded 1.5 million barrels a day for five consecutive weeks, with cargoes heading to northwestern European ports. The global diesel shortage is being driven by multiple factors. Disruptions across the Gulf area and various maritime chokepoints, alongside Ukrainian drone strikes that have paralyzed portions of Russia's energy infrastructure, have severely constrained global supplies. Samantha Dart, co-head of global commodities research at Goldman Sachs, told Bloomberg TV that "diesel, I think is the oil product that is most vulnerable right now," citing seasonal winter demand strength and supply-side issues, particularly in Russia. Goldman analyst Daan Struyven previously warned that "Diesel is at the epicenter of the supply squeeze," OilPrice.com reported. This export...

🌅Afternoon Wire·Aug 6

Global Markets

Mexico Bans Fracking, Glencore Seeks ASX Listing, U.S. M&A Slows

Mexico's government has formally banned hydraulic fracturing in the Tampico-Misantla shale basin, according to a report from OilPrice.com. President Claudia Sheinbaum cited the basin’s dense population, indigenous communities, and freshwater reserves in the decision. The move comes as Mexico seeks to reduce its reliance on U.S. natural gas imports, which currently supply roughly 75% of its domestic demand, or more than 6.5 billion cubic feet per day. A government panel recommended boosting conventional gas production first to cut imports. Even with such measures, reliance on U.S. supply would only fall to about 50%, leaving the door open for future unconventional development in northern basins containing salt water. The decision underscores ongoing global tensions between developing hydrocarbon resources and addressing environmental and social concerns. In corporate news, mining and commodities giant Glencore will pursue a secondary listing on the Australian Securities Exchange (ASX) in October 2026, OilPrice.com reported. Chief Executive Gary...

🌅Afternoon Wire·Aug 6

Operator News

Oxy, Phillips 66 Post Strong Q2 Results Amid Market Volatility

Major operators with ties to the Bakken formation reported strong second-quarter financial results, highlighting the continued impact of commodity prices and downstream operations. According to Rigzone, Occidental Petroleum reported $2.4 billion in net profit adjusted for nonrecurring items for Q2 2026, up from $1.1 billion in the prior quarter. The company attributed the increase to higher oil prices. In a separate report, Rigzone noted Phillips 66 posted significant increases in its quarterly performance. The company saw gains in refining margins, plant utilization, and natural gas liquids (NGL) pipeline and fractionation volumes. Strong NGL performance is a key indicator for the Bakken, where natural gas liquids are a major co-product alongside crude oil. Improved fractionation and pipeline volumes can signal healthy demand for Bakken NGLs. The positive earnings come against a backdrop of ongoing geopolitical tensions affecting global oil flows. Rigzone also published analysis from S&P Global Commodity Insights, whose Crude...

🌅Afternoon Wire·Aug 6

Pipeline & Infrastructure

Global Shipping Shifts, Renewable Push Unfold as Bakken Output Flows

Global energy markets are seeing significant shifts in maritime trade and policy this week, creating a fluid backdrop for Bakken crude exports which rely on efficient transportation to reach refineries. The United Arab Emirates has moved more oil through the critical Strait of Hormuz than any other producer over the past two months, according to Rigzone. This activity provides a buffer for global markets amid a historic energy crisis. For Bakken producers, sustained flow through this chokepoint helps maintain global crude price stability, which underpins drilling economics in the Williston Basin. Meanwhile, a growing flotilla of Iranian oil tankers is idling off Iran's coast, Rigzone reported separately. Analysts view this as a sign that U.S.-led blockade efforts are impacting a major producer's ability to move crude. Any sustained removal of Iranian barrels from the market can tighten global supply, potentially offering price support for light sweet crudes like those produced...

🌅Afternoon Wire·Aug 6

Regulatory

Oil Prices Fall on Optimism for Strait of Hormuz Shipping Deal

Oil prices extended their decline for a third consecutive session on Wednesday, driven by market optimism surrounding potential progress on a shipping agreement for the Strait of Hormuz. According to Rigzone, this optimism outweighed ongoing geopolitical risks in the region. The Strait of Hormuz is a critical global chokepoint for seaborne oil trade. Any agreement that promises more stable flows through the passage can ease supply concerns, putting downward pressure on global benchmark prices. For Bakken producers, who sell their crude at prices tied to these benchmarks, such developments directly impact revenue and cash flow planning. While the specific price move was not quantified in the report, the trend of declining prices presents a headwind for operators across the Williston Basin. Lower prices can quickly affect drilling budgets and the economic viability of marginal wells, particularly for smaller producers. The news underscores the Bakken formation's inherent exposure to international events...

🌅Afternoon Wire·Aug 6

Production Data

Bakken Rig Count Holds at 29 as Oil Prices Surge

North Dakota's active drilling rig count remained at 29 this week, according to live Bakken Wire data, as a sharp rally in crude oil prices provided a potential tailwind for Bakken operators. West Texas Intermediate crude surged 4.16% to settle at $78.35 per barrel, while the global Brent benchmark rose 5.35% to $83.70. The stable rig count, a leading indicator of future production, suggests a near-term cap on the pace of new well development. Historically, the number of active rigs in the Bakken formation correlates closely with oil production levels roughly six to twelve months later, as new wells are drilled, completed, and brought online. The current differential for Bakken crude, the discount at which it trades compared to WTI, was reported at -$3.42 per barrel. This differential impacts the netback price received by Bakken producers. With WTI at $78.35, the implied Bakken wellhead price is approximately $74.93. Natural gas...

🌅Afternoon Wire·Aug 6