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Oil Prices Rally, Brent Tops $97 as Bakken Differential Widens - Bakken Wire
Oil Prices

Oil Prices Rally, Brent Tops $97 as Bakken Differential Widens

WTI gains over 1% to $90.34, but Bakken crude trades at a deeper discount to the benchmark.

Bakken Wire Staff·🌅Afternoon Wire·

Oil prices climbed in Wednesday trading, with global benchmark Brent crude rising nearly 2% to top $97 per barrel. West Texas Intermediate (WTI) crude, the primary U.S. benchmark, gained 1.07% to settle at $90.34 per barrel, according to live price data.

The rally pushed Brent crude to $97.90 per barrel, an increase of $1.74. Natural gas prices held steady at $3.01 per MMBtu. For Bakken producers, the price received for their crude is typically set at a differential to WTI. That differential widened to -$3.42 on Wednesday, meaning Bakken crude is priced at a discount of $3.42 per barrel below the WTI price.

A wider negative differential can offset gains in the benchmark price for North Dakota operators. With Wednesday's WTI price at $90.34, the implied price for Bakken crude at the wellhead would be approximately $86.92 per barrel, before further adjustments for transportation and quality.

The broader price rally was supported by a combination of factors. Industry analysts cited ongoing geopolitical tensions and signs of tightening global supply as key drivers. Production discipline from major exporting nations and unexpected outages in other oil-producing regions have contributed to market tightness.

For Bakken operators, sustained prices above $90 per barrel for WTI provide a strong revenue environment for drilling and completion activities, even with the regional discount. The current price level supports healthy cash flows and can influence decisions on maintaining or increasing production. However, the wider differential highlights ongoing logistical or market-specific challenges for moving Bakken crude to refiners.

The stability in natural gas prices, while positive for associated gas production in the Bakken, remains at a level that prioritizes oil-directed drilling. The formation is one of the top oil-producing regions in the United States.

Market participants will continue to monitor inventory reports and geopolitical developments for signals on the durability of the current price strength. The widening Bakken differential will be a key focus for local producers and midstream companies in the coming days.

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