Oil Prices Surge as U.S. Offers More SPR Crude Amid Tight Market

Crude oil prices rallied sharply on Friday, with benchmark West Texas Intermediate gaining $2.48 to settle at $98.98 per barrel, a 2.57% increase. The global Brent benchmark rose even more sharply, adding $3.84 to reach $109.76, according to live price data.

The price surge comes as the United States Department of Energy offered another 17 million barrels of crude from the Strategic Petroleum Reserve on Friday. According to a report from OilPrice.com, this move is part of the 172 million barrels Washington committed to make available under an International Energy Agency emergency action announced in March. The SPR currently holds about 283 million barrels.

However, the government's latest solicitation faces market headwinds. A similar offer in June, which required companies to return borrowed crude later with premiums as high as 24%, saw companies agree to take only about 500,000 barrels, OilPrice.com reported. The DOE is trying again as commercial inventories tighten; the American Petroleum Institute estimated U.S. crude stocks fell 11.12 million barrels last week, following a 2.09-million-barrel decline the week before.

For Bakken producers, the price strength is tempered by the region's differential. Bakken crude traded at a discount of $3.42 per barrel below WTI on Friday, according to live data. This means Bakken wellhead prices are effectively near $95.56. Meanwhile, natural gas prices saw a slight decline, shedding $0.12 to $3.12.

The broader market context remains one of tight supply. The IEA said Thursday that members would accelerate the roughly 100 million barrels still outstanding from the March commitment, including more than 20 million barrels of diesel "as soon as possible," OilPrice.com reported. Commercial inventories in the U.S. have lost more than 51 million barrels over the last 26 weeks.

Internationally, Angola is seeking to maintain its output, with a Rigzone report from Thursday stating the country wants to keep crude production above 1 million barrels per day.

The sustained high prices, driven by inventory draws and ongoing geopolitical supply concerns, provide a favorable revenue environment for Bakken operators. The stable differential suggests takeaway capacity and pipeline logistics from the play are functioning without major constraint. The repeated, yet struggling, SPR releases highlight the administration's continued effort to apply downward pressure on prices, though the market's response indicates underlying physical tightness.