Oil Prices Surge on Red Sea Tensions, WTI Tops $90

Oil prices surged early Thursday, with U.S. benchmark West Texas Intermediate (WTI) crude gaining over $3 to trade above $90 per barrel, as renewed attacks on tankers in a critical Middle Eastern shipping lane stoked supply fears. According to live price data, WTI was at $90.60, up 4.34%, while the international Brent benchmark traded at $92.91. The discount for Bakken crude at the wellhead held at $3.42 below WTI.

The sharp price increase is driven by escalating geopolitical tensions in the Red Sea. According to OilPrice.com, Houthi forces claimed attacks on two Saudi oil tankers near the Bab el-Mandeb Strait, prompting some vessels to avoid the chokepoint. This marks the fifth consecutive day of gains, with prices up nearly 20% over roughly two weeks as markets price in the risk of supply disruptions from the Middle East. OilPrice.com reported that Brent crude prices passed $98 per barrel in early European trading.

The high-price environment is translating directly into windfall earnings for major producers. According to a separate OilPrice.com report, TotalEnergies saw its adjusted net income jump 68% year-over-year to $6 billion for the second quarter of 2026, attributing the rise to the surge in oil prices and refining margins. This follows a pattern of strong earnings from international oil companies amid the crisis.

For Bakken operators, the rally above $90 WTI significantly improves cash flow and drilling economics. With the Bakken differential remaining stable near -$3.42, local crude is effectively priced above $87 per barrel. This price level supports active drilling programs and well completion activity across the Williston Basin. The sustained premium also bolsters state tax and royalty revenues.

However, the market shows signs of strain from the disrupted trade flows. According to Rigzone, some Chinese refiners are offering Middle Eastern crude they had previously purchased for resale, indicating potential logistical reshuffling as vessels reroute. While the direct impact on Bakken crude demand is limited, such dislocations in global arbitrage can affect the relative pricing of competing crudes.

The current price surge is fundamentally rooted in a geopolitical risk premium, rather than a physical supply shortage. The situation remains fluid, with prices highly sensitive to further news from the Red Sea region. Bakken producers, while benefiting from the higher price floor, will be watching for any signs of demand destruction or economic slowdown that could follow sustained high prices.