Wednesday, September 16, 2026

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Oil Prices

Oil Prices Retreat Wednesday; China Futures Hit Record High

Oil prices declined in early trading Wednesday, with West Texas Intermediate crude dropping more than 2% to trade near $103 per barrel. The pullback comes even as demand in a key Asian market shows record strength, according to related reports. As of Wednesday morning, WTI crude was trading at $103.42, down $2.41 or 2.28% from the previous settlement. The global benchmark, Brent crude, was at $107.26, down $1.49 or 1.37%. The price for Bakken crude at the wellhead was at a discount of $3.42 per barrel compared to WTI, according to live price data. Natural gas prices saw a modest increase, rising $0.02 to $2.94 per MMBtu. The price decline occurs alongside news of unprecedented strength in China's domestic crude market. According to Rigzone, yuan-priced crude futures in China rallied to the highest level on record as of Tuesday, September 15. This indicates robust physical demand and refining activity in...

☀️Morning Wire·Sep 16

Rig Report

** North Dakota Holds at 33 Active Rigs, Matching Month-Ago Level

BODY: The active drilling rig count in North Dakota held steady at 33 on Wednesday, September 16, 2026, according to Bakken Wire live data. The count showed no day-over-day changes, with no rigs added, removed, or relocated. This stability places the state's current activity level unchanged from one month ago, which also stood at 33 rigs on August 17. However, the count is down by one rig compared to one week ago, when 34 rigs were active on September 9. The state's rig activity, a key indicator of future oil production in the Bakken formation, continues at a pace significantly lower than the peaks seen in previous boom cycles but reflects a recent period of equilibrium for operators in the Williston Basin. The local steadiness coincides with a broader, albeit slight, uptick in North American drilling activity. According to a report from Rigzone citing Baker Hughes data, North America added...

☀️Morning Wire·Sep 16

Daily Activity

Continental, EOG Secure New Permits; Hess, Burlington Wells Released from Confidentiality

The North Dakota Department of Mineral Resources approved four new drilling permits in filings dated Tuesday, September 15, 2026, according to the agency's Daily Activity Report. Continental Resources and EOG Resources each secured two permits. Continental Resources' approved permits, 43302 and 43303, are for the JENNER 2-16H and MARYLAND FEDERAL 6-16H wells, both located in Williams County and designated for the 'CONFIDENTIAL' field. EOG Resources' permits, 43304 and 43305, are for the SHELL 57-3305H and SHELL 58-3305H wells in Mountrail County's prolific Parshall field. The report also detailed several wells released from confidential status, providing their first production data to the public. Hess Bakken Investments II, LLC, had two wells released: the SC-MARI-153-98-2223H-3 in Williams County and the EN-WILL TRUST A- 157-94-2734H-4 in Mountrail County's Big Butte field. Burlington Resources Oil & Gas Company LP also had two Haystack Butte field wells in McKenzie County released: the HBU BADLANDS 8S...

☀️Morning Wire·Sep 16

Global Markets

Japan's Top LNG Buyer JERA to Sell Excess Gas Globally, Adding Market Pressure

The largest Japanese LNG importer and power producer, JERA, plans to sell liquefied natural gas on global markets long-term, a move that adds a major new supplier to an already volatile gas trade, according to a report by OilPrice.com. JERA's strategy is to sell any excess gas when domestic demand is low, Irtiza Sayyed, CEO of the newly created JERA Global Energy Solutions (JERA GES), told Bloomberg in an interview published Wednesday, September 16. JERA GES is a wholly-owned subsidiary established earlier this summer to manage the Japanese utility giant's LNG, upstream, low-carbon fuels, and shipping businesses. According to OilPrice.com, the new Singapore-headquartered company is a response to "increasingly volatile and complex energy markets" and aims to be a vertically integrated LNG firm that can quickly respond to market needs. Its primary mission remains ensuring Japan's security of supply. The development signals a shift for a traditional Asian import giant...

☀️Morning Wire·Sep 16

Pipeline & Infrastructure

Saudi Pipeline Outage Spurs Global Crude Market Scramble

Saudi Arabia has shut down a critical oil pipeline and pivoted to spot market sales following drone attacks, creating immediate disruptions in global crude flows that could influence pricing and shipping patterns relevant to Bakken producers. The 750-mile East-West pipeline was taken offline late last week as a precaution after attacks launched from Iraqi territory near the Iranian border resulted in injuries, according to OilPrice.com. The pipeline had become Saudi Arabia's primary route to bypass the Strait of Hormuz, which has been closed to shipping traffic due to ongoing Middle East conflict. Its outage has forced the kingdom to quickly adapt its sales strategy. According to OilPrice.com, Saudi Arabia has sold as much as 20 million barrels of crude in the spot market this week for pickup outside the Strait of Hormuz. Chinese refiners, both state-held and independent, along with processors in other East Asian nations, have been the main...

☀️Morning Wire·Sep 16

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Tumble Over 3% as Bakken Discount Widens

Oil prices fell sharply in midday trading Wednesday, September 16, 2026, with the benchmark West Texas Intermediate (WTI) crude dropping 3.3% to trade at $102.34 per barrel. The global benchmark Brent crude fell 3.19% to $105.28, according to live price data. The price for Bakken crude at the wellhead weakened further, trading at a discount of $3.42 below WTI. The midday sell-off represents a significant retreat for Bakken producers, who are directly exposed to the WTI price minus the local differential. The wider discount indicates increased pressure on Bakken crude's market value relative to the benchmark. Natural gas prices saw a minor decline, trading at $2.9 per MMBtu. The price drop comes amid a surge in retail gasoline prices across the United States. According to Rigzone, gasoline prices jumped in every U.S. state with GasBuddy warning there is "no relief in sight." This consumer-facing price inflation, often a drag on...

🔆Midday Wire·Sep 16

Regulatory

UK Windfall Tax Debate Highlights Global Fiscal Uncertainty for Producers

A UK offshore energy industry group is advocating for the early replacement of the country's windfall tax on oil and gas profits, according to a report from Rigzone. The group, Offshore Energies UK (OEUK), argues the UK would benefit from ending the measure ahead of schedule. The current tax, called the Energy Profits Levy, was introduced in 2022 in response to soaring energy prices following Russia's invasion of Ukraine, Rigzone reported. The call for its early replacement underscores ongoing global debates about fiscal stability for energy producers. For Bakken operators, such international regulatory shifts serve as a reminder of the persistent uncertainty surrounding government tax policy in commodity markets. While North Dakota's tax regime is distinct, major fiscal changes in other significant producing regions can influence global investment sentiment and capital allocation decisions across the industry. The core tension between government revenue needs during price spikes and industry calls for...

🔆Midday Wire·Sep 16

Global Markets

House Advances Russia-Iran Sanctions; Global Diesel Squeeze Looms

The U.S. House of Representatives is poised to vote on September 16 on sweeping new sanctions targeting Russian and Iranian energy sectors, according to OilPrice.com. The legislation, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, would grant the president broad authority to impose tariffs of up to 100% on major purchasers of Russian oil and natural gas. While aimed at pressuring Moscow, the bill has sparked debate over potential impacts on global energy prices and American consumers. Separately, Russia has extended its ban on diesel exports for all fuel producers through October 31, OilPrice.com reported. The move, driven by delayed refinery maintenance and attacks on key facilities, tightens global distillate supplies. U.S. diesel prices hit a record $6.27 a gallon on Tuesday, up about 80 cents in a month, prompting discussion of a potential U.S. export ban among some lawmakers, though the White House has denied any...

🔆Midday Wire·Sep 16

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Tumble, WTI Drops $3.70 as Bakken Discount Widens

Oil prices fell sharply on Wednesday, with the U.S. benchmark posting a significant loss. West Texas Intermediate (WTI) crude closed at $102.13 per barrel, down $3.70 or 3.5%, according to live price data. The international benchmark, Brent crude, settled at $105.56, a drop of $3.19 or 2.93%. The price move widened the discount for Bakken crude. The Bakken differential weakened to negative $3.42 per barrel versus WTI, meaning Bakken crude traded at a deeper discount to the benchmark. Natural gas prices saw a more modest decline, settling at $2.89 per barrel, down $0.03. The sell-off in crude coincided with a report highlighting the rapid expansion of shale oil production from a major global competitor. According to OilPrice.com, Argentina's oil production hit a record 902,920 barrels per day in July 2026, a 12% increase from a year earlier. The growth is entirely driven by the Vaca Muerta shale formation. Shale oil...

🌅Afternoon Wire·Sep 16

Rig Report

North Dakota Rig Count Holds at 34 After Day of Churn

North Dakota's active drilling rig count remained unchanged at 34 on Wednesday, September 16, 2026, following a day of significant operator movement that saw two new rigs commence operations and two rigs release, according to live rig data. Two new drilling rigs were added to the state's tally. Silver Hill Energy Operating, LLC spud a well using the NABORS B27 rig in Burke County at location 159-93-20. HUNT OIL COMPANY also commenced drilling in Burke County with the T&S DRILLING 1 rig at location 160-90-31. Both new operations are focused on the Bakken formation within the Williston Basin. Offsetting these additions, two rigs were released from service. XTO ENERGY INC released the H & P 429 rig from its location at 153-96-3 in McKenzie County. Similarly, HESS BAKKEN INVESTMENTS II, LLC released the ENSIGN 532 rig from its McKenzie County site at 152-95-15. In addition to the starts and releases,...

🌅Afternoon Wire·Sep 16

Global Markets

Global LNG Demand Surges on AI, EIA Sees Tighter 2026 Oil Market

The artificial intelligence boom is driving a massive surge in liquefied natural gas (LNG) demand in Southeast Asia, according to an OilPrice.com report published September 16. This creates a potential long-term outlet for associated gas from the Bakken, even as the U.S. Energy Information Administration (EIA) forecasts a tighter global oil market in 2026. Southeast Asian demand for LNG is being sent "through the roof" by data center construction, as combined-cycle gas turbines remain the region's most reliable source of round-the-clock power. According to the report, Singapore's grid already runs on 95 percent natural gas, with demand from Malaysia, Thailand, and Indonesia set to explode. This presents a structural shift in global gas demand. "These are large, creditworthy off-takers with power needs that remain stable regardless of economic cycles. That does change the risk of calculus for new supply into Southeast Asia," OilPrice.com reported. The report notes that Malaysia and...

🌅Afternoon Wire·Sep 16

Operator News

Continental Resources Signs Major Venezuela Deal with PDVSA

Continental Resources, a major Bakken Shale operator, has signed a memorandum of understanding with Venezuela's state oil company PDVSA to operate and develop the Ayacucho 2 Block in the Orinoco Belt, the company announced Wednesday. According to OilPrice.com, the block holds an estimated 30 billion barrels of resource in place across roughly 126,000 acres in Anzoátegui state. The two sides intend to finalize a long-term "Contrato de Participación Productiva" agreement in the coming weeks, after which Continental will operate the block with a 100% working interest. CEO Doug Lawler called Ayacucho 2 "one of the most significant resource opportunities in Continental's nearly 60-year history," according to the report. Founder and Chairman Emeritus Harold Hamm said the agreement takes the company "to an entirely new level." The deal is part of a series of agreements following the Trump administration's call for American energy companies to help rebuild Venezuela's oil industry, OilPrice.com...

🌅Afternoon Wire·Sep 16