Oil Prices Slip as Brent Takes Hit, Bakken Differential Widens

Oil prices were mixed in afternoon trading Thursday, with international benchmark Brent crude falling more sharply than the U.S. standard. West Texas Intermediate (WTI) crude traded at $83.94 per barrel, down 52 cents or 0.62% for the day, according to live price data. Brent crude fell $1.29 to $89.45 per barrel, a decline of 1.42%.

The price for Bakken crude, a key benchmark for North Dakota producers, was trading at a discount of $3.42 per barrel below WTI. This differential impacts the netback price for Bakken operators. Meanwhile, natural gas prices saw a slight increase, rising 2 cents to $2.75 per MMBtu.

The broader decline in crude prices comes despite supportive data on refined products. According to Rigzone, the U.S. Energy Information Administration's latest update showed a rising price trend for U.S. regular gasoline. Strong gasoline demand and prices typically provide underlying support for crude oil markets.

For Bakken operators, the current price environment remains constructive. WTI holding above $83 per barrel provides solid economics for drilling and completion activity in the Williston Basin. However, the wider Bakken differential of -$3.42 means the local price received is slightly less favorable compared to the national benchmark.

The steeper drop in Brent crude, which widened its premium over WTI, suggests differing market pressures. Brent is more sensitive to global demand signals and geopolitical events, while WTI is more directly influenced by U.S. inventory levels, pipeline flows, and refining activity.

The rising gasoline price trend reported by Rigzone, based on EIA data, indicates continued robust fuel consumption. This supports refinery demand for crude feedstocks, including Bakken crude which is often railed or piped to refining centers. Sustained product demand helps mitigate crude price declines.

Market participants are likely weighing strong product demand against broader economic concerns that could impact future oil consumption. The price action suggests a balancing act between near-term physical market tightness and longer-term macroeconomic uncertainties.

For royalty owners and operators in North Dakota, the focus remains on the absolute price of Bakken crude. With WTI at $83.94 and the local differential applied, effective Bakken pricing remains near the $80 per barrel threshold, a level that generally supports steady production and cash flow in the region.