Oil Prices Rise Over 1% on Supply Concerns, Bakken Discount Steady

Oil prices advanced sharply in trading on Saturday, August 1, 2026, with West Texas Intermediate (WTI) crude rising $1.08, or 1.29%, to $84.67 per barrel. Brent crude, the global benchmark, increased $1.09, or 1.22%, to $90.12 per barrel, according to live market data.

The gains build on a strong monthly performance for crude. Rigzone reported that Brent capped its strongest month since March in July, as geopolitical conflicts raised concerns about global crude supplies. This bullish sentiment has carried into August, driving prices higher.

Adding to the upward pressure, U.S. crude oil inventories fell significantly last week. Rigzone reported that crude stocks, excluding the Strategic Petroleum Reserve, dropped by more than 7 million barrels week-over-week to 404.5 million barrels as of July 24, based on the Energy Information Administration's latest weekly petroleum status report. The drawdown signals tightening supply or robust demand, supporting prices.

In a separate development, Abu Dhabi National Oil Co. (ADNOC) said it would overhaul how it prices all its crude oil grades, Rigzone reported on August 1. The UAE's state oil company is changing its pricing mechanism, which could influence global benchmarks in the long term, though immediate market effects are limited.

For Bakken operators in North Dakota, the price increase is moderated by the region's persistent discount. The Bakken differential stood at $3.42 below WTI, meaning local crude traded at approximately $81.25 per barrel based on today's WTI price. This discount impacts netbacks and profitability for producers in the Williston Basin.

Natural gas prices showed little movement, edging down $0.01 to $2.75 per million British thermal units. The stability contrasts with the volatility in crude markets.

The combination of geopolitical risks and inventory declines has created a supportive environment for oil prices. For Bakken-focused companies, higher WTI prices are positive, but the differential requires efficient operations and cost management to maintain margins. The inventory draw suggests healthy downstream demand, which could bolster crude consumption from U.S. shale plays including the Bakken.

As markets monitor ongoing geopolitical events and inventory trends, Bakken operators will continue to leverage price rallies while navigating the basin's discount. The UAE pricing overhaul may introduce new variables into global crude pricing, but its direct impact on North Dakota production remains uncertain.