Oil Prices Edge Higher, Bakken Differential Widens
WTI crude holds near $90.50 as Brent strengthens on global supply concerns, while Bakken crude trades at a wider discount.
Oil prices were mixed in early trading Wednesday, with global benchmark Brent crude showing stronger gains than U.S. benchmark West Texas Intermediate. The movement widened the discount for Bakken crude, a key metric for North Dakota producers.
West Texas Intermediate (WTI) crude for November delivery was trading at $90.55 per barrel, up just 3 cents or 0.03%. The international benchmark, Brent crude, was at $96.14 per barrel, a gain of 73 cents or 0.77%. According to the live price data, the differential for Bakken crude versus WTI widened to -$3.42.
Natural gas prices also saw gains, trading at $3.19 per MMBtu, an increase of 7 cents.
The stronger performance for Brent crude suggests global supply concerns are outpacing U.S.-specific factors. Brent is more sensitive to international disruptions and OPEC+ policy. The sustained price above $90 per barrel for WTI continues to provide a supportive environment for drilling and completion activity in the Williston Basin.
For Bakken operators, the widening differential is a headwind. A price of $90.55 for WTI translates to approximately $87.13 for Bakken crude at the wellhead, before further adjustments for transportation and quality. This discount reflects the cost of moving crude from the landlocked Bakken formation to major refining hubs.
The current price environment, with WTI firmly above $90, is generally considered profitable for most Bakken operators. However, margins are directly impacted by the local differential. A wider discount can erode cash flow and may influence decisions on the pace of well completions or workovers.
The stability in WTI prices near the $90 mark indicates a balanced U.S. market. Traders are likely weighing steady domestic production against inventory levels and broader economic signals. The stronger move in Brent points to a tighter physical market abroad, which can indirectly support U.S. exports and overall price floors.
High oil prices support state tax revenue and royalty owner payments in North Dakota. Sustained prices at these levels typically correlate with stable or increasing rig activity in the Bakken, as operators lock in returns for new drilling.
Source
Bakken Wire Live Price Data
