Oil Prices Drop Amid Mideast Tensions, Bakken Differential Widens

Front-month WTI crude oil futures fell sharply to $90.87 per barrel on Friday, a drop of $2.17 or 2.33%, according to midday trading data. Brent crude also declined to $93.53, down $1.50. The price drop for Bakken crude was more pronounced, with its differential to WTI widening to -$3.42.

The decline comes despite fresh supply disruptions in the Middle East, which typically support prices. According to a report from OilPrice.com, an attack on Oman's main crude export terminal at Mina al Fahal disrupted flows of the 900,000 barrel-per-day Oman benchmark. This followed strikes on Kuwait earlier in the week, undermining hopes for a de-escalation between the U.S. and Iran.

OilPrice.com reported that these events are keeping markets on edge, with traders increasingly discounting announcements from the Trump administration as "tactical price-signalling rather than meaningful diplomatic progress." This skepticism is capping ICE Brent around the $95 mark and contributing to the day's sell-off. Despite the drop, most global crude benchmarks are still on track for weekly gains of 2-3%.

The wider discount for Bakken crude means North Dakota producers are realizing a lower price relative to the U.S. benchmark. At the current WTI price, Bakken crude would be valued at approximately $87.45 per barrel before further transportation costs. This price environment pressures operator margins in the Williston Basin.

Other global factors are also at play. Russia's Deputy Prime Minister Alexander Novak acknowledged the country's oil producers have been underperforming their OPEC+ target of 9.64 million barrels per day, according to the same source. Meanwhile, Iranian crude prices have dipped into discounts due to slackening demand from Chinese refiners.

For Bakken operators, the combination of lower benchmark prices and a wider local discount creates a challenging revenue outlook. The price move highlights the market's acute sensitivity to geopolitical risk in key producing regions, even as physical supply disruptions occur. Natural gas prices also fell, trading at $3.24, down $0.10.