FANG · 10-Q · 2026Q2 · Full report

Commodity Price and Geopolitical Risk

Diamondback Energy, Inc. · 2026-08-05 · Importance 37 · Surprise 42

Management stated that geopolitical conflicts, tariffs, trade barriers, economic activity, government policies and OPEC+ production levels influence oil, natural gas and natural gas liquids prices. The ongoing Middle East conflict shifted the global crude oil market from a supply-demand surplus to a deficit in 2026, materially reducing crude oil and refined products available in the market and increasing benchmark crude oil prices. Average WTI prices increased to $83.00 per barrel during the six months ended June 30, 2026, from $70.81 per barrel in the comparable 2025 period, while Henry Hub prices declined to $3.20 per MMBtu from $3.69.

Key facts

• The global crude oil market shifted from a supply-demand surplus to a deficit in 2026 as a result of the ongoing conflict in the Middle East, materially reducing crude oil and refined products from the markets and increasing benchmark crude oil prices. source
• During the six months ended June 30, 2026 and 2025, WTI prices averaged $83.00 and $70.81 per Bbl, respectively, and Henry Hub prices averaged $3.20 and $3.69 per MMBtu, respectively. source