Oil Prices Decline Midday, Bakken Differential Widens
WTI falls below $71.50 as broader energy price weakness follows EIA's lowered gasoline demand outlook.
Front-month WTI crude oil futures traded at $71.41 per barrel on Sunday, July 12, a decline of 67 cents or 0.93 percent from the previous settlement. The global Brent benchmark also fell 29 cents to $76.01 per barrel, according to midday price data.
The price drop extends a broader trend of weakness in energy markets, with natural gas futures also down 7 cents to $2.94 per MMBtu. The Bakken crude price differential to the WTI benchmark widened to a discount of $3.42 per barrel, indicating Bakken barrels are trading at a lower price relative to the U.S. benchmark.
The price movement follows a recent downward revision in demand projections from a key U.S. agency. According to Rigzone, the U.S. Energy Information Administration (EIA) cut its U.S. regular gasoline price projection for both 2026 and 2027 in its latest Short-Term Energy Outlook, published on July 10. Lower gasoline price forecasts typically reflect expectations of softer demand or adequate supply, which can weigh on crude oil prices.
For Bakken operators, the combined effect of a lower WTI price and a wider local differential directly impacts wellhead revenue. A Bakken barrel priced at a $3.42 discount to WTI would fetch approximately $67.99 at the current WTI price. This pricing pressure can influence decisions around well maintenance, completion schedules, and hedging activity.
The midday decline suggests market sentiment remains cautious. While Sunday trading volumes can be lighter, the downward move aligns with the EIA's less bullish outlook on refined product prices, a key driver for crude demand. Persistent discounts on Bakken crude can also reflect regional logistical factors or competition with other inland crudes.
Natural gas prices remain subdued near the $2.94 level, offering little relief for producers with significant associated gas production in the Bakken formation. Low natural gas prices can make gas capture and processing less economical, potentially impacting flaring rates and operational planning.
Source
Midday live price data; Rigzone report on EIA outlook dated July 10, 2026.
