Oil Prices Dip Slightly Despite Major U.S. Inventory Draw
WTI falls to $92.64 as Bakken differential holds at -$3.42, but a significant weekly stock decline provides underlying market support.
Front-month oil prices edged lower in early trading Friday, June 5, with West Texas Intermediate (WTI) crude for July delivery down 43 cents to $92.64 per barrel. The global benchmark, Brent crude, traded at $94.53, down 53 cents.
The price for Bakken crude, a key grade for North Dakota producers, is typically priced at a differential to WTI. The Bakken differential was reported at -$3.42 versus WTI, meaning Bakken crude is currently valued around $89.22 per barrel at the wellhead.
The minor price retreat comes despite a significant supportive signal from U.S. inventory data released Wednesday. According to a report from Rigzone, the U.S. Energy Information Administration's (EIA) weekly petroleum status report showed a substantial drawdown in commercial crude stocks. The report, reflecting data for the week ending May 29, indicated crude oil inventories, excluding the Strategic Petroleum Reserve (SPR), fell by 8 million barrels week-on-week to 433.7 million barrels.
Such a large draw typically indicates stronger demand or lower supply than expected, which would usually push prices higher. The fact that prices softened slightly after this news suggests the market may have already priced in the bullish inventory data or is weighing it against other factors, such as broader economic concerns or potential shifts in OPEC+ production policy.
For Bakken operators, the current price environment remains robust. With WTI holding above $92 and the regional differential remaining relatively narrow at under $3.50, wellhead economics continue to support active drilling and completion programs in the Williston Basin. The inventory draw is a positive indicator for sustained demand for U.S. crude, including light sweet oil produced in the Bakken.
Natural gas prices also saw a decline, with the front-month contract down 4 cents to $3.30 per MMBtu. Lower natural gas prices can impact the economics for operators with significant associated gas production in the Bakken, though the primary driver for the region remains crude oil.
The combination of high absolute prices and strong inventory draws creates a favorable backdrop for North Dakota's oil industry. Operators will monitor whether the inventory trend continues in next week's EIA report and any official communication from OPEC+ ahead of its next meeting.
Source
Live price data, Rigzone report dated June 4, 2026.
