Crude Prices Hold Near Multi-Month Highs as Bakken Differential Widens

Front-month WTI crude oil futures settled at $90.83 per barrel on Saturday, a gain of 31 cents (0.34%), according to live price data. The global benchmark Brent crude edged up 3 cents to $98.32. The price action keeps both benchmarks near recent multi-month highs, supported by ongoing geopolitical tensions in key producing regions and expectations of continued OPEC+ supply restraint.

Meanwhile, natural gas futures experienced a significant sell-off, dropping 53 cents to settle at $3.00 per barrel of oil equivalent. The sharp decline contrasts with the steady crude market.

For Bakken producers, the price received at the wellhead is directly impacted by the regional differential. Bakken crude traded at a discount of $3.42 per barrel versus the WTI benchmark on Saturday. This means Bakken barrels are currently priced at approximately $87.41.

The sustained high crude prices, even with the regional discount, provide a favorable revenue environment for operators across the Williston Basin. Prices above $90 WTI support continued drilling and completion activity, as most Bakken wells remain profitable at these levels. The wider differential, however, can reflect local logistical constraints or changing crude quality assessments by refiners.

The stability in crude markets comes amid a complex global backdrop. Ongoing conflicts in the Middle East continue to underpin a geopolitical risk premium, keeping a floor under prices. Furthermore, OPEC+ has maintained its coordinated production cuts, tightening global supply. These factors are counterbalancing concerns over slower global economic growth and its potential impact on fuel demand.

The stark divergence between crude and natural gas prices highlights different market fundamentals. The crude market remains tight due to managed supply, while natural gas is facing headwinds from ample storage levels and milder weather forecasts in key consuming regions, reducing immediate heating demand.

For royalty owners and operators in North Dakota, the high crude price environment translates to strong monthly cash flows. However, market watchers are eyeing the Bakken differential closely, as a persistent or widening discount can erode the netback price realized by producers. The state's oil production, which fluctuates around 1.3 million barrels per day, remains highly sensitive to these benchmark price movements and local differentials.