Oil Prices Dip Midday as EIA Cuts Gasoline Price Forecasts

Oil prices were lower in midday trading Saturday, with West Texas Intermediate (WTI) crude down nearly one percent to trade at $71.41 per barrel, according to live price data. The global benchmark Brent crude was at $76.01.

The price pressure comes a day after the U.S. Energy Information Administration (EIA) lowered its price projections for U.S. gasoline. In its latest Short-Term Energy Outlook, the EIA cut its forecast for the average price of regular gasoline for both 2026 and 2027, Rigzone reported. Lower anticipated fuel costs for consumers can signal weaker-than-expected demand or sufficient supply, weighing on crude benchmarks.

For Bakken producers, the price realized for their crude is tracking lower than the WTI benchmark. The Bakken differential—the discount at which Bakken crude trades versus WTI—was recorded at -$3.42 per barrel. This means Bakken crude is priced at approximately $67.99 per barrel at the pricing hub.

In other market news, India is moving to expand its strategic crude oil reserves. The board of India's largest oil-and-gas producer approved a plan to add 1.75 million tons of storage capacity in Mangalore, Karnataka, to the national reserve system, according to a separate Rigzone report. Such expansions by major importing nations can provide underlying support to global prices by increasing demand for crude to fill the new storage.

Natural gas prices also saw a decline, trading at $2.94 per barrel equivalent, down seven cents.

The combination of a lowered demand outlook from a key energy agency and a widening local price discount presents a challenging price environment for operators in the Williston Basin. A differential above $3.00 per barrel directly reduces the revenue received for each barrel of oil produced in North Dakota, squeezing margins. Operators will be watching for any tightening of the differential, which is influenced by regional pipeline capacity and takeaway constraints.

The midday price action suggests a market balancing longer-term supportive factors like strategic reserve builds against nearer-term concerns over fuel demand and economic growth.