Oil Prices Slide Despite Large U.S. Crude Inventory Draw

Front-month oil prices dropped sharply in midday trading on Wednesday, with the primary Bakken crude benchmark falling over two percent despite a significant reported drawdown in U.S. commercial crude stocks.

West Texas Intermediate (WTI) crude was trading at $68.06 per barrel, down $1.44 (-2.07%), according to live price data. The international Brent benchmark fell to $71.10, a drop of $1.85 (-2.54%). Bakken crude at the wellhead traded at a discount of $3.42 per barrel to WTI. Natural gas prices also softened, down $0.05 to $3.23 per MMBtu.

The price decline occurred despite supportive inventory data from the U.S. Energy Information Administration (EIA). According to a report from OilPrice.com, the EIA stated U.S. commercial crude oil inventories decreased by 3.8 million barrels for the week ending June 26. This draw brings total stockpiles to 408.4 million barrels, which is 7% below the five-year average for this time of year.

Market focus, however, shifted to rising product inventories and political pressure. The same EIA report showed a build of 2.3 million barrels in motor gasoline inventories and a 2.5 million barrel increase in middle distillates. Total product supplied, a proxy for demand, averaged 20.6 million barrels per day over the last four weeks, up 1.7% year-over-year, but gasoline demand was flat and distillate demand was down 1.9%.

Adding to market headwinds, U.S. President Donald J. Trump ordered U.S. gasoline retailers to cut their prices "immediately" in a statement posted on his Truth Social page on Tuesday, according to Rigzone. This direct political intervention has contributed to market uncertainty.

For Bakken operators, the widening discount of Bakken crude to WTI, now at -$3.42, directly impacts wellhead revenue. The concurrent drop in both crude benchmarks and natural gas prices squeezes cash flow, potentially influencing near-term drilling and completion budgets. The inventory data presents a mixed picture: strong crude draws indicate a tight physical market, but builds in refined products suggest potential demand softness ahead of the Fourth of July holiday travel period.

Further industry context will come from the Dallas Fed Energy Survey, with Rigzone reporting that executives from oil and gas firms have revealed their future WTI price expectations for the second quarter. These forecasts will provide insight into producer confidence and spending plans for the remainder of 2026.