Wednesday, September 2, 2026

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Oil Prices

WTI Dips Below $90 Amid Hormuz Volatility, Bakken Discount Widens

Front-month West Texas Intermediate crude futures traded at $89.51 per barrel Wednesday morning, down $0.71 (-0.79%), while Brent crude traded at $94.17, down $0.48 (-0.51%), according to live price data. The moves represent a retreat from earlier highs, with Brent having topped $96 per barrel earlier in the session. Natural gas prices saw a modest gain, up $0.03 to $2.93 per MMBtu. The price volatility is directly linked to escalating tensions in the Strait of Hormuz, a critical global oil chokepoint. According to a report from OilPrice.com, tanker traffic through the strait slumped on Tuesday. Data from Kpler showed only four tanker crossings, well below a ten-day average of 13. Ship-tracking firm Windward reported similarly constrained activity. This follows reports of Iran striking two tankers in the strait over the weekend in response to U.S. military actions, which initially propelled prices higher. U.S. Energy Secretary Chris Wright stated that 17...

☀️Morning Wire·Sep 2

Rig Report

North Dakota Rig Count Holds at 36, Up 8 from August

North Dakota's active drilling rig count held steady at 36 on Wednesday, September 2, according to live data from Bakken Wire. The tally showed no change from the previous day, with no new rigs added, no rigs removed, and no rigs moving location. The current activity level represents a decrease of one rig from one week ago, when the state reported 37 active rigs on August 26. However, the count shows a notable increase of eight rigs compared to one month ago, when 28 rigs were active on August 3. The stability in North Dakota contrasts with a broader downturn in North American drilling activity reported this week. According to Rigzone, North America as a whole dropped five rigs week on week, based on Baker Hughes' latest North America rotary rig count published September 1. The Bakken formation remains the primary engine of oil production in North Dakota. Rig activity...

☀️Morning Wire·Sep 2

Daily Activity

XTO Energy Dominates DMR Permitting with Seven New Dunn County Wells

XTO Energy Inc., a subsidiary of ExxonMobil, was the sole operator securing new drilling permits from the North Dakota Department of Mineral Resources on Tuesday, September 1, 2026, according to the agency's daily activity report. The DMR approved seven new permits, all filed by XTO for locations in Dunn County. All seven permits are for wells on the same pad, designated under the "Hurt Federal" name in Section 25 of Township 148 North, Range 97 West. The approved permits are for the Hurt Federal 32X-25EXH, 32X-25A, 32X-25F, 32X-25B, 32X-25G, 32X-25C, and 32X-25H wells. The report lists the field for these wells as 'CONFIDENTIAL,' indicating that specific geologic or production data is temporarily withheld from public disclosure. This concentrated batch of permits signals a significant new multi-well development project by a major operator in the western Bakken. Dunn County is a core production area within the Williston Basin. In addition to...

☀️Morning Wire·Sep 2

Global Markets

Global Diesel Squeeze Hits Record Highs, Bolstering Bakken Refiner Margins

Global diesel cracks hit record highs this week as supply disruptions from the Middle East and Russia tightened fuel markets, a situation poised to benefit North Dakota's oil producers and refiners. According to a note from ING commodities strategists Warren Patterson and Ewa Manthey, the ICE gasoil crack—the pricing difference between crude and diesel—reached a record high of $79 per barrel on Tuesday. In the United States, the diesel crack is trading well above $100 per barrel, hovering near all-time highs. The acute market tightness is attributed to two major factors. A re-escalation of conflict around the Strait of Hormuz has hampered oil product flows from the Middle East, while a Russian ban on diesel exports, prompted by Ukrainian drone attacks on refineries, has further constrained global supply. ING strategists noted that with little sign of an imminent recovery, "middle distillate cracks are likely to remain highly elevated and volatile."...

☀️Morning Wire·Sep 2

Pipeline & Infrastructure

ONEOK Acquires Brazos Midstream Assets in $4.4B Permian Deal

ONEOK has signed an agreement to acquire Brazos Midstream's natural gas gathering and processing assets located in the Permian Basin, according to a report from Rigzone. The deal is valued at approximately $4.425 billion in cash. The acquisition is enabled by a new $9 billion minority equity investment from Apollo, Rigzone reported. This substantial investment provides ONEOK with the capital to significantly grow its midstream footprint in the Midland Basin, a core part of the larger Permian play in West Texas. For Bakken operators and royalty owners, ONEOK's major expansion in the Permian has implications for capital strategy. ONEOK is a dominant midstream player in the Williston Basin, operating extensive natural gas gathering and processing infrastructure critical to North Dakota's oil production. Large-scale investments in one basin can influence a company's available capital and strategic focus for development in others. The deal underscores the ongoing consolidation and competition within the...

☀️Morning Wire·Sep 2

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Edge Higher as Jet Fuel Spike Hits Airlines

Oil prices gained ground on Wednesday, with global benchmark Brent crude approaching $96 per barrel amid ongoing supply concerns stemming from the conflict in the Middle East. West Texas Intermediate (WTI) rose 0.52% to $90.69, while Brent climbed 0.9% to $95.50, according to midday price data. The discount for Bakken crude versus WTI was $3.42. The primary driver for sustained high oil prices remains the disruption to crude and product flows from the Middle East following the return of hostilities in mid-July, which shattered a brief U.S.-Iran diplomatic pause. According to a report from OilPrice.com, the closure of the Strait of Hormuz is creating a shortage in kerosene supply, leading to a significant spike in jet fuel prices. This is having a direct and severe impact on the global airline industry. Ryanair, Europe's largest low-fare airline, warned on Wednesday that some less well-hedged competitors could struggle to survive the coming...

🔆Midday Wire·Sep 2

Regulatory

Texas Oil Regulator Names New Oil and Gas Division Director

The Railroad Commission of Texas (RRC) has named David Lindley as the new director of its Oil and Gas Division, according to a report from Rigzone. The announcement was made public on Wednesday, September 2, 2026. While the RRC is Texas's primary energy regulator, its policy decisions and enforcement trends are often closely monitored by operators and service companies active in other major producing regions, including North Dakota's Bakken. The RRC oversees the nation's largest oil-producing state and frequently sets precedents on regulatory and operational issues. The appointment of a new division director can signal shifts in regulatory focus or enforcement priorities. For Bakken operators with assets or corporate ties in Texas, this leadership change is of direct interest. More broadly, the industry-wide regulatory environment can be influenced by actions taken in Texas, potentially affecting standards and compliance expectations across state lines. There is no indication from the report that...

🔆Midday Wire·Sep 2

Global Markets

Global Headlines Weigh on Bakken Outlook as Crude Holds Near $90

Global market forces and a major climate report are creating a complex backdrop for Bakken crude prices, which remain elevated despite signs of weakening U.S. fuel demand. Brent crude was trading at $94.01 per barrel on Wednesday, down $0.64 on the day but up roughly $7 per barrel from the same time last week, according to OilPrice.com. West Texas Intermediate (WTI) traded at $89.24, down $0.98. The sustained geopolitical risk premium is partly linked to ongoing disruptions in Russian energy infrastructure. According to an OilPrice.com report, Ukraine's drone strikes have knocked out dozens of Russian refineries, forcing Moscow to seek foreign processing capacity. Russia has struck a deal to process crude at the small Kondensat refinery in Kazakhstan, with around 70% of the output to be sent back, but experts say this does little to solve the severe fuel shortages impacting both the Russian domestic market and military operations. "Possibly...

🔆Midday Wire·Sep 2

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI Tops $90 as Geopolitical Tensions, Refining Crunch Lift Prices

Oil prices extended gains Wednesday afternoon, with West Texas Intermediate (WTI) crude closing in on $91 a barrel amid heightened Middle East tensions and a severe global shortage of refining capacity. WTI settled at $90.67, up 0.5%, while the international benchmark Brent crude rose 0.62% to $95.24, according to live price data. The price for Bakken crude at Clearbrook, Minnesota, held at a discount of $3.42 per barrel below WTI. The price strength is being driven by a confluence of factors squeezing fuel markets. According to OilPrice.com, the U.S.-Iran conflict has deepened this week with tit-for-tat attacks, disrupting the normalization of traffic through the critical Strait of Hormuz. Simultaneously, Ukrainian attacks on Russian refineries are constraining exports from a major global fuel supplier. These geopolitical shocks are exacerbating an already tight global refining complex. Goldman Sachs commodity expert Daan Struyven warned that global refinery runs are down 7 million barrels...

🌅Afternoon Wire·Sep 2

Rig Report

Bakken Rig Count Holds at 37 as Hess Deploys New Unit in McKenzie County

The number of rigs actively drilling for oil and gas in North Dakota held at 37 on Wednesday, unchanged from the previous week, according to live data from Bakken Wire. The count saw a net increase of one rig from Tuesday's total. The sole addition was a rig operated by Hess Bakken Investments II, LLC. The company deployed the Ensign 532 rig to a location in McKenzie County (152-95-2). No rigs were reported as removed or moved on Wednesday. The current activity level represents a significant increase from one month ago. On August 3, 2026, the state's active rig count stood at 28, meaning 9 new drilling rigs have been activated over the past month. The rig count one week ago, on August 26, was also 37. The sustained higher level of drilling activity aligns with a reported summer surge in the Bakken. According to a Bing News report from...

🌅Afternoon Wire·Sep 2

Regulatory

Oil Holds Near Five-Week High on Geopolitical Tensions

Oil prices held near a five-week high on Wednesday as renewed geopolitical friction raised concerns over global supply routes. According to Rigzone, the market strength is linked to fresh fighting between the U.S. and Iran, which has escalated worries over the security of exports through the critical Strait of Hormuz. For operators in North Dakota's Bakken formation, sustained prices above $90 per barrel represent a strong fundamental backdrop for drilling and completion activities. Higher commodity prices directly improve cash flow and can support capital spending plans in the Williston Basin. The Strait of Hormuz is a vital maritime chokepoint for global oil shipments. Any threat to transit through the strait, as reported by Rigzone, typically induces a risk premium in global crude benchmarks, including the West Texas Intermediate price that Bakken crude often tracks. This price support comes without requiring increased production from domestic shale fields. While Bakken production is...

🌅Afternoon Wire·Sep 2

Global Markets

Methanex to Halt New Zealand Methanol Production Amid Gas Supply Issues

Methanex Corporation, a Canadian methanol producer, will indefinitely halt production at its New Zealand facilities next year due to gas supply uncertainty, according to a report from Rigzone. The company has entered into an agreement to sell its gas supply entitlements, the industry news source reported. The shutdown of a significant methanol production facility removes a major source of global demand for natural gas. While the specific event is geographically distant, it contributes to the complex global supply-demand balance for natural gas and natural gas liquids (NGLs). Developments in international gas markets can influence the price environment for all gas-producing regions, including North Dakota's Bakken formation. For Bakken operators, the price of natural gas and associated NGLs like ethane and propane is a critical component of well economics. While the Bakken is primarily an oil play, gas capture and sales provide important revenue streams and help operators meet North Dakota's...

🌅Afternoon Wire·Sep 2

Operator News

Chevron Commits $7 Billion to Venezuela Expansion

Chevron will invest more than $7 billion in Venezuela over the next five years, a major international commitment announced Wednesday that could influence capital spending in other regions, including the Bakken. According to a report from OilPrice.com citing Reuters, the investment aims to more than double Chevron's oil production in Venezuela to about 600,000 barrels per day by 2031. The capital will be deployed through Chevron's three Venezuelan joint ventures, with the company stating total production costs will remain below $20 per barrel. The investment follows new agreements with Venezuela that provide Chevron with improved fiscal, commercial, and legal terms, as well as additional acreage in the Orinoco Belt. Chevron currently produces about 290,000 barrels per day in Venezuela. For Bakken operators and North Dakota stakeholders, the scale of this overseas investment highlights the global competition for finite capital within integrated majors. While the source material does not detail specific...

🌅Afternoon Wire·Sep 2