Oil Prices Gain Over 1% Midday, Bakken Discount Widens

Oil prices climbed more than 1% in midday trading Sunday, with West Texas Intermediate (WTI) crude futures rising above $78 per barrel. The gains come even as a recent government report showed an increase in U.S. commercial stockpiles.

WTI crude for September delivery was trading at $78.18 per barrel, a gain of $0.89 or 1.15% on the day. The global benchmark, Brent crude, saw a larger increase, rising $1.06 to $83.55 per barrel, a 1.29% gain, according to live price data. Natural gas prices also edged higher, adding $0.02 to $2.66 per MMBtu.

The price strength persists despite bearish inventory data from the U.S. Energy Information Administration (EIA). According to a report from Rigzone, the EIA's latest weekly petroleum status report showed U.S. crude oil stocks, excluding the Strategic Petroleum Reserve, increased to 407.0 million barrels as of July 31.

The Bakken crude price differential to WTI widened slightly. Bakken crude at Clearbrook, Minnesota, was priced at a $3.42 per barrel discount to WTI, according to midday data. This discount is a key metric for North Dakota producers, as it reflects the netback price received after accounting for transportation costs from the wellhead to the major market hub.

For Bakken operators, the combination of higher outright prices and a stable, though wider, differential is a positive signal. The current WTI price near $78 provides economic support for ongoing drilling and completion activities in the Williston Basin. However, the wider discount compared to the benchmark indicates continued pressure on regional pipeline and rail takeaway capacity or weaker demand for the specific crude slate.

The midday price rally suggests traders are looking beyond the single weekly inventory build, potentially focusing on broader geopolitical factors, OPEC+ production policy, or expectations for future demand. The stronger gain in Brent versus WTI has narrowed the spread between the two benchmarks, which can influence the competitiveness of U.S. crude exports.

Market participants will be watching for the next EIA report this week for further signals on U.S. supply and demand balance. For North Dakota producers, maintaining oil prices above the $75 threshold is critical for sustaining cash flow and capital programs in the basin.