Oil Prices Drop Amid OPEC+ Announcement, Natural Gas Strengthens

Oil prices retreated in Tuesday morning trading, with both major benchmarks down more than 1.5%. West Texas Intermediate (WTI) crude fell $1.70 to settle at $89.60 per barrel, a decline of 1.86%. Brent crude dropped $1.42 to $92.83 per barrel, according to live price data. The Bakken crude differential held at a discount of $3.42 per barrel versus WTI.

The price drop follows an announcement from OPEC+ that it will boost production in July. According to Rigzone, analysis from Rystad Energy suggests the planned production increases "will have little to no real impact on the oil markets." Despite this assessment, the market reaction was negative.

In contrast to oil, natural gas prices showed modest strength, adding $0.03 to reach $3.18 per MMBtu. This strength is supported by a forecast for a significant tightening in the global liquefied natural gas (LNG) market. According to a report from OilPrice.com, Morgan Stanley analysts project Asia's benchmark LNG price will soar to $25 per MMBtu in the second half of 2026, which would be its highest level in three and a half years.

The investment bank attributes the forecast to rising Asian demand for summer electricity and cooling, coupled with the European Union's need to refill depleted gas storage sites. The report notes that China's LNG imports have already jumped, with its 30-day moving average for deliveries reaching 178,000 tons per day, the highest level since early February.

This dynamic presents a mixed picture for Bakken operators, who produce both oil and associated natural gas. The lower crude prices directly pressure oil revenues, though the Bakken discount to WTI remains relatively narrow. The strengthening natural gas price and bullish global LNG outlook provide a more positive signal for gas realizations. However, the Bakken's gas infrastructure constraints mean local prices often do not fully capture global LNG premiums.

The news also highlights divergent strategies among U.S. producers. A separate Rigzone report from June 8 indicates extreme responses in other basins, summarizing that some gas-focused drillers in regions like the Permian are "shut out of oil price rally" and are choosing to "shut off wells."

For North Dakota, the immediate impact is driven by the ~$86 per barrel netback price for Bakken crude after accounting for the differential. The natural gas price provides ancillary support. The long-term LNG forecast suggests sustained global demand for gas, which could eventually support more infrastructure investment to reduce flaring and improve wellhead economics in the gas-rich areas of the Williston Basin.