Oil Prices Retreat Wednesday; China Futures Hit Record High
WTI falls over 2% despite strong demand signals from Asia, while Bakken crude trades at a discount.
Oil prices declined in early trading Wednesday, with West Texas Intermediate crude dropping more than 2% to trade near $103 per barrel. The pullback comes even as demand in a key Asian market shows record strength, according to related reports.
As of Wednesday morning, WTI crude was trading at $103.42, down $2.41 or 2.28% from the previous settlement. The global benchmark, Brent crude, was at $107.26, down $1.49 or 1.37%. The price for Bakken crude at the wellhead was at a discount of $3.42 per barrel compared to WTI, according to live price data. Natural gas prices saw a modest increase, rising $0.02 to $2.94 per MMBtu.
The price decline occurs alongside news of unprecedented strength in China's domestic crude market. According to Rigzone, yuan-priced crude futures in China rallied to the highest level on record as of Tuesday, September 15. This indicates robust physical demand and refining activity in the world's largest oil importer, a factor that would typically provide price support.
The divergence between strong Asian demand signals and lower U.S. benchmark prices suggests localized market factors may be at play. These could include weekly U.S. inventory data, fluctuations in the U.S. dollar, or profit-taking after recent gains. The wider Brent-WTI spread of nearly $4 per barrel reflects these differing regional pressures.
For Bakken operators, the daily price movement presents a mixed picture. The record-high Chinese futures price underscores sustained global demand, which is a long-term positive for export-oriented U.S. shale producers. However, the immediate discount for Bakken crude versus WTI directly impacts the revenue received for each barrel produced in North Dakota. At a $3.42 discount, Bakken crude would be priced at approximately $100.00 per barrel.
The modest rise in natural gas prices offers a slight offset for producers with significant gas production or associated gas from oil wells, though prices remain below the $3.00 threshold.
Market participants will be watching for U.S. government inventory data and any official commentary from China regarding its strategic reserves or import quotas. The strength of Chinese demand, as evidenced by its record futures prices, is likely to continue providing a floor under global crude markets, even as short-term volatility persists.
Source
Live price data; Rigzone report from September 15, 2026.
