Tuesday, August 18, 2026

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Oil Prices

Brent Tops $91, WTI Rises on Strait of Hormuz Attack

Global oil prices rose early Tuesday, with Brent crude topping $91 per barrel, after an attack on a vessel in a critical Middle Eastern shipping lane heightened supply disruption fears. The U.S. benchmark, West Texas Intermediate (WTI), was trading at $84.16 per barrel, up 0.5% or $0.42 from the previous close. The international benchmark, Brent crude, was at $91.03, a gain of $0.16. North Dakota Bakken crude traded at a discount of $3.42 per barrel to WTI, according to live price data. The immediate catalyst was an incident in the Strait of Hormuz. According to OilPrice.com, a cargo vessel was struck by an unknown projectile early Tuesday local time while transiting the Strait. The United Kingdom Maritime Trade Operations reported the impact damaged the engine room and resulted in a crew casualty. "This incident close to the Omani shores... took place amid heightened security concerns," OilPrice.com reported, noting that declarations...

☀️Morning Wire·Aug 18

Rig Report

North Dakota Rig Count Holds at 33 Amid Global Fuel Market Shifts

North Dakota's active drilling rig count held steady at 33 on Tuesday, August 18, 2026, according to live Bakken Wire data. The count showed no change from the previous day, with zero new rigs added, zero removed, and none moving location. The current figure represents an increase of four rigs compared to one week ago, when the state reported 29 active rigs on August 11. The longer-term trend shows more significant growth, with the rig count up by eight from the 25 rigs reported one month ago on July 19. The stability in drilling activity comes as global fuel markets experience significant shifts. According to a report from OilPrice.com, China boosted its fuel exports last month as domestic stockpiles swelled. Chinese refiners exported 4.65 million tons of refined products in July, a 6.7% increase from June, though exports were down 12.9% year-over-year. A notable surge was seen in diesel exports,...

☀️Morning Wire·Aug 18

Daily Activity

DMR Approves Four New Bakken Permits, Marathon Renews Six in Dunn County

The North Dakota Department of Mineral Resources approved four new drilling permits and ten permit renewals in its latest daily activity report, with Marathon Oil Company leading renewal activity in Dunn County. Four new permits were issued on Monday, August 17, 2026. According to the DMR report, True Oil LLC received a permit (43216) for the SUPERIOR FEDERAL 31-32 32-8 TF3H well in McKenzie County's BOWLINE field. Phoenix Operating LLC was approved for the AKEMI FERRARI 14-11-2 1H-LLR (43217) in Divide County's SKABO field. Petro-Hunt L.L.C. secured two permits (43218, 43219) for confidential locations in Billings County. Ten permits were renewed, with Marathon Oil Company accounting for six in a single Dunn County spacing unit. The renewed Marathon permits—ANITA USA 31-14H (38471), ELVA USA 21-14H (38472), CAROLYN USA 21-14H (38473), SHELL USA 21-14TFH (38474), JUDITH USA 31-14TFH (38475), and TREASURE USA 41-14TFH (38476)—are all in the NW NW of section...

☀️Morning Wire·Aug 18

Operator News

Global Oil Shifts from Angola, Mideast Impact Bakken Dynamics

Global oil markets are reacting to a new offshore discovery and rising shipping costs, developments that could influence Bakken operators' strategies, according to reports from Rigzone. Supertanker earnings on the Middle East to Asia route have reached $510,000 per day, nearing a two-month high, Rigzone reported. Exporters are hunting for more vessels to deliver crude via the Strait of Hormuz amid ongoing security uncertainty. Separately, Chevron has made a new discovery in Block 0 offshore Angola, and the company and its partners are considering a tieback, Rigzone said. This adds to global oil supply prospects from conventional offshore fields. For Bakken producers, higher tanker rates signal increased transportation costs for crude exports. The Bakken formation, North Dakota's primary oil-producing region, relies on efficient logistics to move oil to refineries and ports for international trade. Elevated shipping expenses could squeeze operator margins if not offset by higher global prices. Chevron's Angola...

☀️Morning Wire·Aug 18

Global Markets

Diverging Agency Outlooks Signal Uncertainty for Bakken Crude Pricing

Leading energy agencies are presenting sharply different views of the global oil market, according to recent reports. Ole Hansen, Saxo Bank's Head of Commodity Strategy, highlighted that the monthly oil market reports from the U.S. Energy Information Administration (EIA), the International Energy Agency (IEA), and OPEC "continue to highlight a massive divergence," according to a report from Rigzone. This lack of consensus among the world's primary forecasting bodies creates a cloud of uncertainty over future crude oil prices. For Bakken operators, price stability is a critical component for planning drilling budgets, securing financing, and managing hedge positions. Conflicting signals on global supply, demand, and inventory levels make these tasks significantly more challenging. The Bakken formation's output is directly tied to the global crude benchmarks. When major agencies disagree on fundamental market data, it can lead to increased price volatility. This volatility impacts the realized price for every barrel of Williston...

☀️Morning Wire·Aug 18

Global Markets

Global LNG, Oil Supply Risks Intensify Amid Middle East Conflict

Power generation costs in Pakistan surged by 38% in July from a year earlier as the country paid the highest spot LNG prices in four years, according to OilPrice.com. The cost spike was driven by supply disruptions from the Middle East, forcing Pakistan to procure expensive spot cargoes. In mid-July, state-controlled Pakistan LNG Limited accepted a spot cargo at a price of $21.88 per million British thermal units (MMBtu), the highest paid since the Iran war began in February 2026. The renewed closure of the Strait of Hormuz and the stranding of cargoes from term supplier Qatar have upended global LNG flows, the report said. Total electricity generation in Pakistan also rose by 7% in July year-over-year, further pushing up costs. The situation highlights the continued fragility of global natural gas supply chains and their direct impact on power prices. In North Africa, Libya is seeking between $36 billion and...

☀️Morning Wire·Aug 18

Operator News

Geopolitical Tensions Boost Oil Prices; Grid Corridor Plans Scrapped

Crude oil futures advanced on Monday as persistent geopolitical tensions in the Middle East elevated global supply risks, according to Rigzone. The price support comes amid reports that prospects for peace in the region have suffered a fresh setback. For Bakken operators, higher global benchmark prices can improve the economics of production in North Dakota's shale play. The region's light sweet crude often trades at a differential to benchmarks like West Texas Intermediate, but broader market gains typically translate into stronger wellhead revenue. In separate federal energy policy news, the Trump administration has withdrawn three proposed major electricity transmission corridors. According to Rigzone, the cancelled projects are the Lake Erie-Canada Corridor, the Southwestern Grid Connector Corridor, and the Tribal Energy Access Corridor. While not directly targeting oil and gas infrastructure, the withdrawal of these grid corridor proposals signals a potential shift in federal priorities for large-scale energy transmission projects. For...

☀️Morning Wire·Aug 18

Pipeline & Infrastructure

Argentine Oil Exporter Vista Jumps; Power Constraints Slow Robotics

Shares in Vista Energy SAB, Argentina's top oil exporter, jumped in New York on Monday, according to Rigzone. The move followed a disclosure that investor Peter Thiel had logged a stake in the company. While Vista operates in Argentina's Vaca Muerta shale play, major investment flows into international shale operators can signal broader investor sentiment toward the sector. The Bakken formation in North Dakota remains a core U.S. shale basin where operator valuations are closely watched. In a separate industry report, power constraints are becoming a real brake on the adoption of robotics, said Robert Liew, Director of Integrated Energy Research at Wood Mackenzie, Rigzone reported. The observation was made on Monday. The push for automation and robotics is key for shale operators seeking efficiency gains and cost reductions. In the Bakken, technologies like automated drilling and remote monitoring are increasingly common. However, Liew's comment underscores that the energy required...

☀️Morning Wire·Aug 18

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

WTI, Brent Gain Amid Diesel Shock, Global Supply Concerns

Front-month WTI crude futures rose 0.94% to trade at $84.53 per barrel on Tuesday, August 18, while Brent crude gained 0.7% to $91.51, according to midday price data. The Bakken crude differential at the Clearbrook, Minnesota, hub widened to a discount of $3.42 per barrel versus WTI. The gains in headline crude benchmarks occurred alongside a stark warning from veteran analyst Jeff Currie about a severe dislocation in global fuel markets. According to an interview published by OilPrice.com, Currie stated that while Brent near $91 looks "almost civilized," the real energy shock is in refined products. He noted European diesel was trading around $170 per barrel—almost double the price of Brent. "Nobody on the planet earth consumes crude oil," Currie told CNBC. He argued that the historical relationship between crude and product prices has broken down, creating an "illusion of abundance." The disconnect stems partly from 100 million to 120...

🔆Midday Wire·Aug 18

Operator News

ExxonMobil, Chevron Announce Major International Projects Amid Tight Tanker Market

ExxonMobil and its partners have awarded approximately $1.1 billion in engineering, procurement, and manufacturing contracts for a major liquefied natural gas (LNG) project in Mozambique, according to a report from Rigzone. The contracts are for the pre-FID (Final Investment Decision) Rovuma LNG project, which has a planned capacity of 18.6 million metric tons per annum. In a separate development reported by Rigzone, Chevron and its partners have made a new oil discovery in Block 0 offshore Angola. The companies are considering a tieback development for the find, which would connect the new reservoir to existing production infrastructure. These announcements underscore the ongoing global investment by the integrated majors who are also key operators in North Dakota's Bakken formation. Capital allocated to large-scale international projects in LNG and deepwater oil can compete for funding against onshore shale developments like those in the Williston Basin. Meanwhile, the global crude shipping market is...

🔆Midday Wire·Aug 18

Global Markets

Russian Political Crackdown Raises Geopolitical Uncertainty for Energy Markets

Russia's Supreme Court has barred the anti-war Yabloko party from September parliamentary elections, a move that solidifies the Kremlin's control and signals the prolonged geopolitical instability that underpins global oil market volatility. According to OilPrice.com, the court rejected Yabloko's appeal on August 17, the same day a deputy chairman of the party was sentenced to over 11 years in prison for criticizing the war in Ukraine. For Bakken operators and royalty owners, this internal Russian crackdown reinforces the likelihood of continued conflict and the associated supply risks that have kept a floor under crude prices. The elections to Russia's State Duma, scheduled for September 18-20, will be the first since the full-scale invasion of Ukraine in 2022. Yabloko, which had made "For Peace and Freedom" its central campaign slogan, was removed from the ballot based on allegations from a nationalist party that included claims of foreign funding and extremism—charges the...

🔆Midday Wire·Aug 18

Global Markets

Global Tensions Spike Oil to $91, UK Weighs Major North Sea Projects

ICE Brent crude traded at $91 per barrel on Tuesday, August 18, 2026, lifted by renewed Middle East tensions, according to OilPrice.com. Former President Trump's threats and a Truth Social post acknowledging no U.S.-Iran talks, coupled with assertive Houthi attacks near the Bab el-Mandeb Strait, have heightened market volatility. In the Strait of Hormuz, VLCC (Very Large Crude Carrier) rates have skyrocketed. Assessed earnings for a Middle East-to-China voyage have surpassed $500,000 per day, with fixing costs for inside-Hormuz cargoes jumping to $31 million per voyage. OilPrice.com reported that Saudi Aramco loaded at least three VLCCs last week—Malaysia Prosperity, Algeria Prosperity, and Singapore Prosperity—for Asian buyers via ship-to-ship transfers off Fujairah in the UAE. Meanwhile, the UK government faces a critical decision on its North Sea oil and gas future. The public consultation has closed on the Jackdaw and Rosebank projects, which represent a total anticipated investment of £10.8 billion...

🔆Midday Wire·Aug 18

Operator News

North America Rig Count Rises; Energy Stocks Near Record

North America's active rig count increased by eight this week, reversing a recent trend of declines, according to Baker Hughes data reported by Rigzone. The rise in drilling activity signals potential renewed momentum for oilfield services and operators across the continent, including those in the Bakken formation. Separately, energy stocks are nearing record levels set earlier this year, Rigzone reported. The sustained strength in equity markets reflects investor confidence in the sector, which can influence capital availability for Bakken producers looking to fund drilling programs or manage debt. In a strategic move outside direct oil and gas production, Equinor has agreed to purchase a majority stake in a 1.48-gigawatt combined-cycle gas turbine (CCGT) power plant in Pennsylvania. According to Rigzone, the Norwegian energy giant and project partner Invenergy will explore further collaboration leveraging Invenergy's operating capabilities and position in the PJM power market. For the Bakken, these developments paint a...

🔆Midday Wire·Aug 18

Pipeline & Infrastructure

Midday Pipeline Roundup: Kazakhstan Profits Surge, Mideast Tensions Persist

Kazakhstan's state-owned oil and gas company, KazMunayGas, reported a significant rise in first-half profits, according to Rigzone. The company posted net income of around $1.96 billion for the first six months of 2026, a 69.1 percent increase from the same period in 2025. Rigzone reported the surge was driven by higher oil prices, which offset lower production volumes. Separately, prospects for peace in the Middle East have suffered a fresh setback, Rigzone reported on August 17. While no specific details were provided, ongoing tensions in the region frequently influence global crude oil markets by introducing a risk premium to prices. For Bakken operators and royalty owners, these international developments underscore the interconnected nature of the oil market. Strong financial results from major foreign producers like KazMunayGas, fueled by robust crude prices, reflect the same commodity price environment that benefits North Dakota's wells. However, sustained high prices abroad can also incentivize...

🔆Midday Wire·Aug 18

Production Data

Bakken Rig Count Holds at 33 as Oil Prices Support Steady Activity

North Dakota's active rig count held steady at 33 on Tuesday, as supportive oil prices provided a foundation for sustained operator activity in the Bakken formation. The current pace of drilling suggests near-term production levels are likely to remain stable. West Texas Intermediate (WTI) crude traded at $84.53 per barrel midday Tuesday, a gain of 79 cents. The international benchmark Brent crude was at $91.51. The Bakken crude differential, the discount at which local crude trades versus WTI, stood at -$3.42, according to live market data. The rig count is a closely watched leading indicator for future oil production. Historically, a sustained increase in the number of active drilling rigs correlates with rising output several months later, as new wells are completed and brought online. Conversely, a declining rig count typically foreshadows a production downturn. The current count of 33 rigs represents a level of activity that, if maintained, should...

🔆Midday Wire·Aug 18

Workforce & Community

Bakken Rig Count Holds at 33 Amid Stable Oil Prices

The active rig count in North Dakota held steady at 33 on Tuesday, as oil prices posted modest gains, indicating a period of sustained but moderate activity for the Bakken region's workforce and communities. West Texas Intermediate crude traded at $84.53 per barrel, according to midday data. The current rig level, while significantly below the peak boom years, represents a stable operational base for the state's primary oil-producing region. Analysts typically view rig count as a leading indicator for oilfield employment, with each active rig supporting a wide range of direct and indirect jobs. "For communities in the Williston Basin, the rig count is a pulse check," said a longtime Bakken industry observer. "Thirty-three rigs suggests a focused, efficient industry that supports local businesses and provides steady employment without the extreme boom-bust cycles of the past." The stability in activity is reflected in local housing and commercial real estate markets,...

🔆Midday Wire·Aug 18

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Rise Amid Tight Global Supply, Shrinking Distillate Inventories

Oil prices edged higher on Tuesday, with U.S. benchmark West Texas Intermediate (WTI) crude settling at $84.48 per barrel, a gain of $0.74, according to live price data. The international Brent crude benchmark also rose, closing at $91.33. The Bakken crude differential to WTI was -$3.42. The price support follows a weekly inventory report from the American Petroleum Institute (API) showing U.S. commercial crude oil inventories fell by a modest 328,000 barrels in the week ending August 14, according to OilPrice.com. This minor draw occurred despite another 5.3 million barrels being released from the Strategic Petroleum Reserve (SPR), bringing the SPR's total down to 293.4 million barrels. A more significant market driver was the continued sharp decline in distillate fuel inventories, which include diesel and heating oil. The API estimated distillate stocks fell by 2.797 million barrels last week, building on a previous week's draw. Distillate inventories were already 12%...

🌅Afternoon Wire·Aug 18

Rig Report

North Dakota Rig Count Climbs to 34, Adding 2 New Rigs

North Dakota's active drilling rig count rose to 34 on Tuesday, August 18, 2026, according to live data from Bakken Wire. The state added two new rigs and saw one removed in the last day, for a net daily gain of one rig. The new additions were both located in Divide County. Phoenix Operating LLC spudded the PATTERSON 280 rig at location 162-95-28, while FORMENTERA OPERATIONS, LLC began operations with the NABORS B23 rig at 162-96-13. The sole rig removed was ENERPLUS RESOURCES USA CORPORATION's PATTERSON 806 rig, which had been working at 157-99-11 in Williams County. One rig also changed location. FIREBIRD SERVICES, LLC moved the T&S DRILLING 2 rig to a new site at 149-102-18 in McKenzie County. The current count of 34 rigs continues a significant upward trend in Bakken drilling activity over recent weeks. The active fleet has grown by five rigs since one week ago,...

🌅Afternoon Wire·Aug 18

Operator News

Major Operators ExxonMobil, Chevron Announce International Upstream Developments

ExxonMobil and its partners have issued approximately $1.1 billion in contracts for a major liquefied natural gas project in Mozambique, according to a report from Rigzone. The engineering, procurement, and manufacturing contracts are for the pre-Final Investment Decision (FID) Rovuma LNG project, which has a planned capacity of 18.6 million metric tons per annum. Separately, Chevron and its partners have made a new oil discovery in Block 0 offshore Angola, Rigzone also reported. The companies are considering a tieback development for the find. These announcements underscore the continued global investment by the international oil majors that also hold significant positions in the Bakken formation. For Bakken-focused operators and service companies, such large capital commitments to long-cycle international projects can signal corporate spending priorities. Capital allocation is a zero-sum game; funds directed toward major LNG or deepwater developments may compete with budgets for onshore U.S. shale plays. The ExxonMobil Mozambique LNG...

🌅Afternoon Wire·Aug 18

Global Markets

Global Green Hydrogen Struggles Signal Continued Oil Demand

A major green hydrogen ambition and implementation gap is reinforcing the enduring global demand for oil and gas, a dynamic that supports the long-term outlook for North Dakota's Bakken formation. According to a study published in the journal Nature Energy, only 7% of announced global green hydrogen capacity was finished on schedule in 2023, tracking 190 projects over three years. The struggles of the green hydrogen sector extend to key markets like California, which has bet big on the fuel for transportation. Despite this push, hydrogen currently costs four times more per mile than gasoline, even with elevated gas prices driven by turmoil in the Strait of Hormuz, OilPrice.com reported. The number of hydrogen cars registered in California decreased in 2025 to approximately 14,000, and the number of fueling stations shrank from 65 in 2023 to 57 as of August 2026. Investor hesitancy is a major factor. "With a couple...

🌅Afternoon Wire·Aug 18

Global Markets

AI Could Reinforce Fossil Fuel Dominance, Study Finds

A new study suggests artificial intelligence could strengthen the competitive position of fossil fuel producers, including oil and gas firms, by driving efficiency gains that outweigh AI's benefits for renewable energy. According to a paper published in the journal npj Climate Action, AI-driven productivity gains in the fossil fuel industry could outweigh the emissions savings from using AI tools in the renewable energy sector. The authors argue that "net emissions reductions require renewables gains 4–5x greater than fossil fuel gains," and that AI could "reinforce fossil fuel incumbency." The analysis highlights that AI unlocks productivity and efficiency gains across all energy sources. Energy consultancy Rystad Energy estimates AI and digitalization could create nearly $500 billion in cumulative value for exploration and production companies between 2026 and 2030, primarily through cost reductions, production increases, and compressed development timelines. Meanwhile, global oil flows are adapting to geopolitical disruptions in the Middle East....

🌅Afternoon Wire·Aug 18

Operator News

Global Tensions Lift Oil Prices, Equinor Expands in Power Market

Oil prices climbed to a three-week high on Tuesday amid heightened tensions in key global shipping corridors and tight fuel markets, according to Rigzone. The market gains were attributed to a standoff involving Iran and threats to tanker traffic, providing underlying support for crude benchmarks that influence Bakken crude pricing. The geopolitical risk was underscored by an attack on a Greek-run oil tanker in the Black Sea after it loaded a cargo of Russian origin, Rigzone separately reported. Incidents threatening maritime oil transport, particularly in regions like the Black Sea and the Strait of Hormuz, can introduce volatility and risk premiums into global oil markets. For Bakken producers, stronger global crude prices improve netbacks for oil shipped to coastal refineries. The Bakken formation in North Dakota is a major onshore U.S. oil-producing region, and its economic health is closely tied to the prevailing price of West Texas Intermediate and other...

🌅Afternoon Wire·Aug 18

Pipeline & Infrastructure

Energy Stocks Near Record Highs Amid Strong Oil Prices

Energy stocks are closing in on record levels reached earlier this year, according to a report from Rigzone. The sector-wide surge reflects robust commodity prices and strong financial performance across the industry. In a separate development, Kazakhstan's state-owned oil and gas company KazMunayGas reported a significant rise in first-half profits. The company posted net income of around $1.96 billion for the first six months of 2026, a 69.1 percent increase from the same period in 2025. Rigzone reported that higher oil prices offset lower production volumes for the international operator. For operators in North Dakota's Bakken formation, these reports signal continued favorable market fundamentals. Strong oil prices directly benefit the economics of wells across the Williston Basin, supporting cash flow for further development and well maintenance. The performance of publicly traded energy stocks is often closely watched as a barometer for the sector's health. When share prices for large-cap energy...

🌅Afternoon Wire·Aug 18

Production Data

Bakken Rig Count Holds at 34 as Oil Prices Support Activity

North Dakota's active drilling rig count held at 34 on Tuesday, a level that suggests a continued steady pace of development in the Bakken formation. The stability in drilling activity comes as benchmark oil prices provide supportive economics for producers. West Texas Intermediate (WTI) crude was trading at $84.48 per barrel, up 0.88% on the day, according to live Bakken Wire data. The international benchmark Brent crude was at $91.33. The Bakken crude differential—the discount at which local crude trades against WTI—stood at -$3.42. Historically, the number of active drilling rigs serves as a leading indicator for future oil production in a basin. A sustained rig count in the mid-30s typically points to a maintenance level of activity, where operators are drilling enough new wells to offset natural production declines from existing wells. This helps keep overall output from the state relatively stable. The current price environment appears sufficient to...

🌅Afternoon Wire·Aug 18