Friday, August 7, 2026

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Oil Prices

Oil Prices Fall on Strait of Hormuz Deal Speculation, Bakken Differential Holds

Oil prices are lower in early Friday trading, with West Texas Intermediate (WTI) crude at $76.65 per barrel, down $0.64 or 0.83 percent. Brent crude followed a similar path, trading at $81.78, down $0.71. The Bakken crude differential stands at a discount of $3.42 per barrel to WTI, according to live market data. The price pressure stems from trader reactions to diplomatic developments concerning the Strait of Hormuz. According to OilPrice.com, oil prices tumbled this week as the market priced in a potential breakthrough in talks involving Iran, Oman, and the United States. Traders sold off crude, removing a significant risk premium, on optimism that a deal could restore normal tanker traffic through the critical chokepoint. September WTI futures were down over 10% for the week as of Friday morning. However, a rebound from the week's lows indicates the market recognizes that diplomatic headlines have not yet translated into a...

☀️Morning Wire·Aug 7

Rig Report

North Dakota Rig Count Holds at 29, Up Four From Month Ago

The number of active drilling rigs in North Dakota held steady at 29 on Friday, August 7, according to live rig data from Bakken Wire. The total showed no day-over-day change, with no new rigs added, no rigs removed, and no rigs moving location. The current count represents a net increase of two rigs compared to one week ago, when 27 rigs were active on July 31. More significantly, the state's drilling activity is up by four rigs over the past month, rising from a base of 25 rigs on July 8. The stability at 29 rigs continues a period of measured growth in the Bakken formation's drilling activity. While the day-to-day count can be static, the weekly and monthly gains indicate a gradual expansion of operational focus by oil and gas producers in the Williston Basin. This incremental increase in rigs typically signals sustained development planning and capital deployment,...

☀️Morning Wire·Aug 7

Daily Activity

Oasis Permits Two New McKenzie County Wells; Firebird Abandons Disposal Well

The North Dakota Department of Mineral Resources approved two new horizontal well permits for Oasis Petroleum North America LLC in McKenzie County, according to yesterday's daily activity report. The operator filed for the STEPANEK 5201 13-18 3B and STEPANEK 5201 13-18 4B wells, both located in NW NE 18-152N-101W in the Elk field. Other new drilling permits included one for Murfin Drilling Company, Inc. in Dunn County and one for Phoenix Operating LLC in Williams County. Murfin permitted the LC RAMBOUSEK 1-9H well in SE SE 9-141N-97W in the St. Anthony field. Phoenix Operating LLC permitted the BIG STONE 32-29-20 5H-LL well on LOT 1, 5-159N-98W in the Skabo field. The report also listed significant well status changes. Firebird Services, LLC officially abandoned the BIG STONE 1 SWD disposal well, located on LOT 1, 5-159N-98W in Williams County. The filing updates the well's status in the Big Stone Disposal field...

☀️Morning Wire·Aug 7

Global Markets

Global Supply Shocks, Strong Demand Underpin Bakken's Market Position

Persistent global supply disruptions and strong demand from major importers are reinforcing the strategic value of stable production basins like the Bakken, according to recent industry reports and news events. A new attack on Russian refining capacity and warnings of "historical supply constraints" from a key producer come as India, a top importer, highlights its acute vulnerability to overseas supply shocks. Ukraine struck two of Russia's oil refineries overnight, according to Rigzone. Such repeated attacks have degraded Russia's downstream capacity over the course of the conflict, intermittently tightening global refined product markets and supporting crude pricing benchmarks to which Bakken crude is linked. Simultaneously, Saudi Aramco revealed it achieved total hydrocarbon production of 9.5 million barrels of oil equivalent per day in the second quarter "despite historical supply constraints," Rigzone reported. While the company did not detail the constraints, the statement underscores ongoing challenges within the global supply system that...

☀️Morning Wire·Aug 7

Global Markets

Global Tensions Threaten Oil Shipping, Petrofac Gets Investment

Geopolitical instability across the Middle East intensified this week, posing fresh risks to global oil shipping routes critical to world markets, according to reports from OilPrice.com. For Bakken operators, these developments underscore the volatile global backdrop against which North Dakota crude is priced and exported. Iran and Oman are nearing an agreement on reopening the strategic Strait of Hormuz, a vital chokepoint for seaborne oil shipments, OilPrice.com reported. However, the proposed terms are contentious: Iran would control inbound traffic while Oman oversees outbound shipping, with Tehran seeking sanctions relief in exchange for toll-free passage. The shipping industry has warned that proposed transit fees and existing U.S. sanctions could render any arrangement unworkable. Simultaneously, the conflict between Iran-backed Houthi rebels and Saudi Arabia has reignited, directly threatening oil infrastructure. The Houthis attacked two Saudi oil tankers on August 5, following weeks of escalating attacks on Saudi shipping and oil assets, OilPrice.com...

☀️Morning Wire·Aug 7

Operator News

DNO Pursues Genel Deal; Oil Rises on Supply Concerns

Norwegian oil company DNO has revealed a rejected acquisition proposal for Britain's Genel Energy but says it remains willing to pursue negotiations, according to a report from Rigzone. While not a direct Bakken operator, merger and acquisition activity among international firms can influence capital flows and strategic focus within global shale plays, including North Dakota's. Separately, oil prices rose on Thursday as optimism faded that a deal between Iran and Oman would quickly restore normal shipping traffic through the critical Strait of Hormuz, Rigzone reported. Supply concerns stemming from geopolitical tensions in key shipping lanes typically provide support for global benchmark prices, which directly affect the revenue environment for Bakken producers. In financial markets, JPMorgan now expects the U.S. Federal Reserve to hike interest rates in December, Rigzone noted. Higher interest rates can increase the cost of capital for heavily leveraged exploration and production companies, potentially tightening budgets for drilling...

☀️Morning Wire·Aug 7

Pipeline & Infrastructure

Saudi Price Cut, Slower M&A, and Phillips 66 Results Frame Bakken Outlook

Saudi Arabia has cut the price of its main crude oil grade, according to a report from Rigzone. The move comes as some Persian Gulf producers continue to send barrels through the Strait of Hormuz. For Bakken producers, this signals ongoing competitive pressure from global suppliers, which can influence the pricing benchmarks for the light sweet crude produced in North Dakota. Separately, U.S. upstream merger and acquisition activity slowed in the second quarter of 2026, Rigzone reported, citing an announcement from Enverus Intelligence Research. A slowdown in deal-making among oil and gas producers can reflect market uncertainty or a focus on consolidating recent acquisitions, potentially leading to a period of reduced corporate activity for operators in the Williston Basin. In contrast to these broader market signals, Phillips 66 posted strong quarterly results. The company reported increases in refining margins, plant utilization, and natural gas liquids pipeline and fractionation volumes, Rigzone...

☀️Morning Wire·Aug 7

Production Data

Bakken Rig Count Holds at 29 as Oil Prices Retreat

North Dakota's active drilling rig count held steady at 29 this week, a key indicator of stable but restrained operator activity in the Bakken formation. The count comes as crude oil prices saw a modest pullback, with WTI trading at $76.65 per barrel and Brent at $81.78, according to live Bakken Wire data. The current rig level suggests producers are maintaining a disciplined capital approach. Historically, the rig count is a leading indicator for future oil production, with a typical six-month lag between drilling activity and sustained output. The current count of 29 rigs is significantly below the boom-era highs but represents a plateau that has supported the state's production at roughly 1.2 million barrels per day in recent months. The price environment remains a primary driver for any potential activity shifts. West Texas Intermediate (WTI) crude fell 64 cents to $76.65 in the latest session, while the global Brent...

☀️Morning Wire·Aug 7

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Climb on China Demand, Bakken Differential at -$3.42

Crude oil prices posted solid gains in midday trading Friday, with supportive global demand data countering a reported rise in U.S. inventories. West Texas Intermediate (WTI) crude for September delivery was trading at $78.38 per barrel, up $1.09 or 1.41%. The global benchmark, Brent crude, rose $1.24 to $83.73 per barrel, a 1.5% increase. The price strength comes despite a reported build in U.S. commercial crude stocks. According to Rigzone, citing the latest U.S. Energy Information Administration weekly report, crude oil inventories, excluding the Strategic Petroleum Reserve, stood at 407.0 million barrels as of July 31. A key driver for the market was data showing a rebound in demand from the world's largest crude importer. Rigzone reported that China's monthly crude imports rebounded in July from a near-decade low. The increase followed a pickup in flows through the Strait of Hormuz and refiners boosting purchases from nations outside the Middle...

🔆Midday Wire·Aug 7

Operator News

ConocoPhillips Announces Planned Leadership Succession

ConocoPhillips, the largest oil producer in North Dakota's Bakken formation, has announced a planned leadership succession, according to a report from Rigzone. The news, published on August 7, 2026, signals a forthcoming change at the top for a company that is a critical pillar of the state's oil and gas industry. While specific details on the timing or the executives involved were not provided in the initial report, such transitions at major operators are closely watched for their potential impact on regional strategy. ConocoPhillips holds a commanding position in the Williston Basin, making its operational focus and capital allocation decisions highly influential for the broader Bakken landscape. For other Bakken operators, royalty owners, and service companies, leadership stability at the basin's top producer is a significant factor. A smooth, planned succession typically suggests continuity in the company's approach to its core assets, including its extensive Bakken portfolio. Any major strategic...

🔆Midday Wire·Aug 7

Regulatory

Geopolitical Tensions, Market Moves Shape Bakken Outlook

Conflicting signals from Tehran and Washington over the strategic Strait of Hormuz are keeping global oil markets on edge, with direct implications for Bakken crude pricing benchmarks. According to OilPrice.com, Iran's parliament is reviewing a bill to permanently ban U.S., Israeli, and other vessels from the strait, backed by drone and missile strikes. Simultaneously, former U.S. President Trump has claimed a final deal is "close." This geopolitical "schizophrenia" contributed to ICE Brent crude being set to close the week at $83 per barrel. In related Gulf developments, Iran and Oman have agreed on coordinates for a proposed shipping corridor that would give Iran control over Gulf-bound vessels. Iranian officials cautioned that key details remain unresolved and the new deal alone would not guarantee security in the strait. Major producer Saudi Aramco is adjusting its strategy in response to market conditions. The Saudi national oil company cut its flagship Arab Light...

🔆Midday Wire·Aug 7

Global Markets

Global Chokepoint Disruption Adds $5/Barrel Premium, Libya Aims for 2M Bpd

Saudi Arabia is paying a premium of around $5 per barrel to reroute crude away from Middle Eastern chokepoints, according to an OilPrice.com report published Friday. The detour, which sends oil west across the kingdom to the Red Sea, through Egypt via the SUMED pipeline, and around Africa's Cape of Good Hope to reach Asia, adds significant cost from extra freight, fuel, insurance, and pipeline charges. For a standard two-million-barrel cargo, this approaches an additional $10 million. Saudi Aramco is reportedly considering a separate pricing mechanism for crude loaded from Egypt’s Mediterranean port of Sidi Kerir as a result. The reroute is a direct response to threats at two critical shipping lanes. The first, the Strait of Hormuz, has seen repeated attacks, including 15 on vessels belonging to Abu Dhabi National Oil Company (ADNOC) since the regional war began, according to a separate Friday report from OilPrice.com. One crew member...

🔆Midday Wire·Aug 7

Operator News

ADNOC Expands Tanker Fleet in $1.3B Deal; BP Consolidates Trinidad Gas

Abu Dhabi National Oil Company (ADNOC) has acquired 11 supertankers for $1.3 billion to expand its export fleet, according to reports from OilPrice.com and Rigzone. The state-owned giant's logistics unit bought five Very Large Gas Carriers (VLGCs) and six Very Large Crude Carriers (VLCCs) in a move to support growing production and export volumes. Nine of the vessels were acquired on the secondary market and are scheduled for delivery in the third quarter of 2026, entering service immediately. The remaining two VLGCs are newbuilds from a Chinese shipyard, with delivery expected in the fourth quarter. This fleet expansion follows a $900 million order for four newbuild LNG carriers placed by ADNOC last month, Rigzone reported. The United Arab Emirates has maintained oil exports at pre-crisis levels, utilizing routes both through and outside the strategic Strait of Hormuz. ADNOC Logistics & Services currently owns over 340 vessels and operates 600 chartered...

🔆Midday Wire·Aug 7

Pipeline & Infrastructure

Norwegian Labor Dispute, Global M&A Activity Highlight Midday Energy News

A Norwegian labor dispute involving well service employees remains a point of uncertainty for the oilfield services sector, according to a report from Rigzone. Despite a pause in hostilities after striking workers and their employers agreed to settle through an independent tribunal, employees have raised concerns about the potential impact on their payrolls and benefits. The outcome of this dispute could have indirect implications for international service costs and labor stability, factors watched by operators globally, including those in the Bakken. In corporate activity, Norwegian oil and gas company DNO plans to continue pursuing an acquisition offer for Britain's Genel Energy despite an initial rejection, Rigzone reported. DNO revealed it had made a proposal that was turned down but stated it remains willing to negotiate with Genel's board. Such consolidation moves among international explorers can influence global investment patterns and partner strategies. Separately, an investment firm linked to the United...

🔆Midday Wire·Aug 7

Regulatory

Fed Rate Hike Forecast, Oil Price Rise Shape Bakken Outlook

Financial analysts at JPMorgan Chase now expect the Federal Reserve to implement an interest rate hike in December, according to a report from Rigzone. This shift in monetary policy outlook, if realized, could increase capital costs for Bakken producers and tighten credit conditions across the oilfield service sector. Separately, oil prices rose on Thursday as optimism faded regarding a potential Iran-Oman deal that was seen restoring normal shipping traffic through the critical Strait of Hormuz, Rigzone reported. The fading prospects for a quick resolution to regional shipping tensions provided support for crude benchmarks, a positive signal for Bakken wellhead economics. For operators in the Williston Basin, the interplay of these factors defines the current business environment. Higher interest rates can pressure margins by raising the cost of servicing debt and financing new drilling programs, potentially slowing the pace of development. Conversely, supportive oil prices are essential for sustaining cash flow...

🔆Midday Wire·Aug 7

Production Data

Bakken Rig Count Holds at 29 as Oil Prices Rise

North Dakota's oil industry is maintaining a measured pace of drilling activity, with the active rig count holding at 29 as of midday Friday, August 7, according to live Bakken Wire data. This level of activity continues a multi-year trend of a significantly contracted drilling fleet compared to the boom-era highs. The steady rig count unfolds against a backdrop of rising crude prices. West Texas Intermediate (WTI) crude was trading at $78.38 per barrel, a gain of $1.09 or 1.41% on the day. The international Brent crude benchmark was at $83.73, up $1.24. The price for Bakken crude at the wellhead is typically discounted against WTI; the current Bakken differential is -$3.42 per barrel. Natural gas prices were reported at $2.67 per MMBtu. Historically, the number of active drilling rigs is a leading indicator for future oil production in the Bakken formation, North Dakota's primary oil-producing region. It typically takes...

🔆Midday Wire·Aug 7

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Hold Steady as Market Weighs Geopolitics, Rising U.S. Stocks

Front-month oil futures showed little change in Friday afternoon trading, with West Texas Intermediate (WTI) crude gaining just three cents to settle at $77.32 per barrel, according to live price data. The global benchmark, Brent crude, dipped two cents to $82.47. The muted price action belies ongoing market tension centered on the protracted U.S.-Iran war and its impact on Middle Eastern oil flows. According to a report from OilPrice.com, banking giant Citi has raised its third-quarter Brent forecast to $80 per barrel from $75, citing the prolonged conflict which has kept geopolitical risk elevated. The bank's analysts noted that shipping through the critical Strait of Hormuz remains heavily constrained, supporting prices. However, Citi maintains a bearish view for later this year, leaving its fourth-quarter Brent forecast unchanged at $70 and predicting a 2027 average of $65. This outlook hinges on an anticipated resolution to the Hormuz blockade. Other banks, like...

🌅Afternoon Wire·Aug 7

Rig Report

North Dakota Rig Count Drops to 28 as Phoenix Rig Released

North Dakota's active drilling rig count fell to 28 on Friday, August 7, according to live data from Bakken Wire. The total represents a decrease of one rig from the previous day. One rig was released from service on Friday. Phoenix Operating LLC removed its PATTERSON 280 rig from location 162-95-28 in Divide County. No new rigs were added, and no rigs were reported to have moved locations. Despite the daily decrease, the current fleet of 28 rigs is one rig larger than it was one week ago on July 31, 2026, when the count stood at 27. The count has shown a net increase of three rigs over the past month, rising from 25 active rigs on July 8. The rig count is a key leading indicator of future oil production activity in the Bakken formation. The current level, while down from the highs of previous boom cycles, suggests...

🌅Afternoon Wire·Aug 7

Operator News

ConocoPhillips Announces Planned Leadership Succession

ConocoPhillips, a major operator in North Dakota's Bakken formation, announced a planned leadership succession on Friday, according to a report from Rigzone. The company, one of the largest producers in the Williston Basin, did not specify the outgoing or incoming executives in the initial announcement. Such planned transitions typically aim to ensure strategic continuity for large, publicly traded energy firms. For Bakken operators and service companies, leadership stability at a top-tier producer like ConocoPhillips is critical. The company's operational strategy and capital allocation decisions directly influence activity levels and investment in the region. The Bakken formation remains a core part of ConocoPhillips's lower-48 portfolio. Any significant shift in corporate strategy following a leadership change could eventually impact its development pace in North Dakota. Industry observers will watch for further details on the succession timeline and the new executive's background. A focus on shale efficiency and free cash flow generation has...

🌅Afternoon Wire·Aug 7

Regulatory

Oil Prices Steady Amid Middle East Tensions, Hormuz Deal Prospects

Oil prices held steady on Friday as the market balanced reports of a potential deal concerning the Strait of Hormuz against ongoing threats to Middle East shipping, according to Rigzone. The tension centers on a critical chokepoint for global crude exports. For Bakken producers, steady prices provide a stable near-term revenue outlook, but the underlying geopolitical volatility underscores the constant influence of global supply risks on their operations. The Strait of Hormuz is a vital passage for seaborne oil, and any significant disruption there typically supports higher global benchmark prices, which Bakken crude prices track. While the specific details of the reported potential deal were not disclosed by the source, the mere prospect can temper price rallies. Conversely, the persistence of shipping threats acts as a floor under prices. This dynamic creates a cautious trading environment. The Bakken formation in North Dakota is a major onshore U.S. oil-producing region. Its...

🌅Afternoon Wire·Aug 7

Global Markets

Global Labor, Tech Shifts Pose Indirect Challenges for Bakken

Global energy and labor market shifts, while geographically distant, underscore systemic pressures that influence the economic landscape for Bakken oil producers. Two reports highlight challenges in China's power infrastructure and Russia's workforce, factors that can indirectly affect global energy demand and commodity flows relevant to North Dakota. According to OilPrice.com, China is investing in quantum technology to stabilize its national power grid, which is under unprecedented stress from the artificial intelligence boom and intermittent renewable energy sources. Researchers at a substation in Hefei are testing quantum sensors to detect weak electrical signals and minute shifts in temperature to prevent outages. Anhui Electric Power Company researcher Tian Teng stated the technology is "a 'hard support' for guaranteeing the power supply and promoting development," OilPrice.com reported. A more reliable and efficient Chinese grid could support continued industrial and tech growth, influencing long-term global oil demand patterns that Bakken crude production is tied...

🌅Afternoon Wire·Aug 7

Global Markets

Global Energy Affordability, Policy Shifts Impact Markets

Elevated energy costs are reshaping the US political landscape ahead of the November midterm elections, with candidates prioritizing consumer affordability over climate policy, according to a report from OilPrice.com. The national debate is being driven by a 7% rise in US residential electricity prices in 2025 versus 2024, with gasoline prices nearly $1 per gallon higher nationwide than a year ago due to the war in Iran. This shift is creating an "energy pragmatism," with incumbent Democratic governors in some states embracing an "all-of-the-above" approach that includes natural gas alongside other power sources, OilPrice.com reported. However, the trend is not uniform, with some Democrats facing primary challenges for being open to fossil fuels. The changing political rhetoric, where energy affordability is trumping traditional climate messaging, could influence federal and state energy policy relevant to North Dakota producers. In parallel, a major global investor is pushing back against relaxed climate reporting....

🌅Afternoon Wire·Aug 7

Operator News

BP Buys Woodside Stake in Trinidad Gas, Adnoc Expands Fleet Amid Global Moves

BP has acquired Woodside Energy's stake in the Calypso deepwater natural gas project offshore Trinidad and Tobago, according to Rigzone. The project is in an early stage of development. BP has an established business and extensive oil and gas infrastructure in the region, the report noted. In a separate major investment, the Abu Dhabi National Oil Company (Adnoc) spent $1.3 billion to expand its tanker fleet, Rigzone reported. Adnoc is the biggest oil producer in the United Arab Emirates, and the move is linked to a boom in oil exports. Meanwhile, labor uncertainties persist in another major oil-producing region. In Norway, well service employees have raised concerns about the impact on their payrolls and benefits, according to Rigzone. This comes despite a pause in hostilities after striking workers and their employers agreed to settle their dispute through an independent tribunal. For Bakken operators and royalty owners, these international developments underscore...

🌅Afternoon Wire·Aug 7

Pipeline & Infrastructure

Investment, M&A, and Rate Outlook Shape Energy Sector Friday

Petrofac strengthened its long-term ownership structure with a new investment from Al Mazrui, according to Rigzone. The news source reported the move reflects continued confidence in the company's business strategy and growth prospects. For Bakken service companies and operators, stable, well-capitalized partners are crucial for maintaining project execution and development plans. In merger and acquisition news, Norwegian company DNO plans to continue pursuing an acquisition of Britain's Genel despite an initial rejection, Rigzone reported. DNO revealed a rejected proposal but stated it remains willing to negotiate with Genel's board. Such consolidation efforts among international E&Ps can influence global investment patterns and strategic focus, potentially affecting capital flows into mature basins like the Bakken. Separately, JPMorgan now expects the U.S. Federal Reserve to hike interest rates in December, according to a separate Rigzone report. This shifting macroeconomic outlook is critical for Bakken producers, as higher borrowing costs can impact capital budgets...

🌅Afternoon Wire·Aug 7