Oil Prices Drop on Rising U.S. Inventories, Bakken Differential Holds

Crude oil prices declined sharply in trading on Friday, July 24, 2026, with both major benchmarks shedding over 1.8%. West Texas Intermediate (WTI) crude settled at $90.50 per barrel, a drop of $1.69, while Brent crude fell $2.43 to $98.26, according to live price data.

The primary pressure on prices came from a reported increase in U.S. commercial crude oil inventories. According to Rigzone, citing the latest U.S. Energy Information Administration (EIA) weekly report, crude stocks, excluding the Strategic Petroleum Reserve, stood at 411.7 million barrels as of July 17. This week-on-week build suggests robust domestic supply is currently outpacing demand.

Despite the price drop, underlying demand for American crude remains strong from international buyers. A separate Rigzone report highlighted that U.S. crude is drawing significant overseas interest from Asian and European refiners. This export demand typically provides a floor for domestic prices and supports the economics of inland production basins like the Bakken.

For Bakken operators, the key pricing metric is the Bakken differential to WTI. Today, that differential was reported at a discount of $3.42 per barrel below the WTI price. This means Bakken crude is effectively priced at approximately $87.08 per barrel. While the broader market sell-off lowers the absolute price, a stable or narrowing differential indicates that Bakken barrels are maintaining their competitive position in the marketplace, aided by strong export demand.

The simultaneous data points of rising inventories and strong overseas interest create a mixed market signal. The inventory build is a bearish short-term indicator, contributing directly to today's price decline. However, the sustained pursuit of U.S. crude by foreign refiners is a bullish factor for medium-term price stability and supports the need for consistent production from U.S. shale plays.

Natural gas prices saw a minor decline, with the front-month contract trading at $2.90, down $0.02. This continues a trend of relatively weak gas pricing, which affects the economics of associated gas production in the Bakken and can influence drilling decisions for operators primarily targeting oil.

Today's price action underscores the immediate influence of weekly inventory data on trader sentiment. For Bakken producers, the focus remains on the differential and the long-term outlet provided by the global market, which helps mitigate the impact of domestic stock fluctuations.