Oil Prices Slide Over 2% as Bakken Differential Narrows

Oil prices fell sharply on Thursday, with U.S. benchmark West Texas Intermediate crude dropping 2.49 percent to settle at $81.20 per barrel. The global Brent benchmark also declined 2.23 percent to $87.00 per barrel, according to live market data.

The sell-off occurred alongside a dip in natural gas, which traded at $2.73, and a tightening of the Bakken oil price differential. The discount for Bakken crude versus WTI narrowed to $3.42 per barrel.

The price decline contrasts with record-breaking U.S. gasoline prices reported on Thursday. Patrick De Haan, Head of Petroleum Analysis at GasBuddy, announced that the U.S. gasoline price had broken a couple of records, according to a report from Rigzone. This divergence suggests broader macroeconomic concerns or shifts in refined product inventories may be outweighing strong consumer fuel demand in the near term.

For Bakken operators, the combined move represents a dual pressure. The outright drop in the WTI price directly reduces revenue per barrel, while the narrower differential offers a partial offset. The effective price for Bakken crude at the wellhead on Thursday would be approximately $77.78 per barrel, calculated from the WTI price minus the differential.

Such price levels remain within a profitable range for many efficient operators in the basin, but sustained declines could trigger a reassessment of drilling and completion budgets. The focus for producers will be on operational efficiency and cost control to maintain margins if the downward trend continues.

The market movement will be closely watched by royalty owners and service companies across North Dakota, as the health of the state's oil industry is directly tied to price realizations for Bakken crude. Further volatility is expected as traders digest weekly inventory data and broader economic indicators.