Oil Prices Rebound Friday as Bakken Differential Widens

Oil prices moved higher in Friday morning trading, with West Texas Intermediate (WTI) crude rising 1.27 percent to $97.57 per barrel and Brent crude gaining 1.97 percent to $104.60, according to live price data. The rebound follows a three-day period of declines, as reported by Rigzone.

The earlier downturn was attributed to market hopes for a reopening of the critical Strait of Hormuz shipping channel, Rigzone reported on Thursday. The potential easing of supply disruptions in the Middle East had pressured prices.

For Bakken producers, the price of crude at the wellhead is directly impacted by the regional differential. On Friday, Bakken crude was trading at a discount of $3.42 per barrel compared to WTI, putting its implied price near $94.15. A wider differential can squeeze margins for operators in North Dakota's premier oil field.

Meanwhile, natural gas prices saw a slight decline, trading at $3.13 per MMBtu. In refined products, the U.S. Energy Information Administration (EIA) provided a forecast for diesel, a critical fuel for the oilfield and transportation sectors. In its May Short-Term Energy Outlook (STEO), the EIA projected the on-highway diesel fuel price will average $5.36 per gallon in the second quarter of 2026, according to Rigzone.

The morning's price recovery suggests the market is reassessing geopolitical supply risks. Sustained prices above $95 per barrel for WTI provide a favorable revenue environment for Bakken operators, though the local discount and operational costs remain key factors for profitability.

The EIA's diesel forecast is also a significant input for Bakken economics, as diesel fuels drilling rigs, completion crews, and the trucking fleet that moves sand, water, and crude oil. Higher diesel costs can increase well construction and lifting expenses across the basin.

Market participants will continue to monitor developments in the Middle East, global inventory data, and domestic demand signals for direction. The volatile price action this week underscores the sensitivity of crude markets to geopolitical headlines and their immediate impact on Bakken crude realizations.