Oil Prices Plunge Over 4%, Bakken Differential Narrows

Front-month crude oil futures posted steep losses in Wednesday trading, with the U.S. benchmark falling nearly 5% to trade near $89 per barrel. The sell-off pressured Bakken crude prices, though the regional discount to the national benchmark narrowed slightly.

As of the afternoon of Wednesday, May 27, 2026, West Texas Intermediate (WTI) crude traded at $89.44 per barrel, a drop of $4.45 or 4.74% for the session. The international benchmark Brent crude traded at $92.93, down $3.74 or 3.87%. The Bakken crude differential, representing the price adjustment for oil produced in the North Dakota region, was quoted at a discount of $3.42 per barrel versus WTI. This is a narrower discount than has been seen in recent weeks, potentially softening the impact of the broader price drop for local producers.

In contrast to crude, natural gas prices saw modest gains. The front-month contract traded at $3.09 per MMBtu, an increase of $0.08 for the day.

The sharp decline in oil prices this week is attributed to a combination of macroeconomic concerns and a potential shift in market sentiment, overshadowing supportive inventory data. According to a report from Rigzone, Macquarie strategists are forecasting a drawdown in U.S. crude inventories for the week ending May 22. Typically, a decrease in stockpiles suggests stronger demand or lower supply and would be supportive for prices.

For Bakken operators, the dramatic daily drop highlights continued volatility in the market. The nearly $4.50 single-day decline in WTI directly impacts the revenue calculation for every barrel produced. However, the concurrently narrower Bakken differential of -$3.42 means the effective price received for Bakken crude is closer to the national benchmark than in periods when the differential is wider, partially offsetting the headline loss.

The price action suggests traders are currently prioritizing broader economic factors over a single week's expected inventory draw. The losses extend a downward trend for the week, putting pressure on operator cash flows and potentially influencing near-term drilling and completion budgets in the Williston Basin.