Oil Prices Surge on Supply Fears, WTI Nears $100

Crude oil prices surged in morning trading Friday, with West Texas Intermediate nearing the $100 per barrel mark, as supply fears linked to the ongoing U.S.-Iran conflict continue to pressure global markets. According to live price data, WTI Crude was at $99.84, up $2.92 or 3.01%, while Brent Crude traded at $108.28. The Bakken differential was recorded at $-3.42 versus WTI.

The rally extends a volatile week driven primarily by the shutdown of the Strait of Hormuz, a critical shipping chokepoint for global crude exports. OilPrice.com reported that the closure, stemming from fighting that began in late February, has cut off access to roughly one-fifth of the world’s seaborne oil shipments. This has created major stress across energy markets, with July WTI futures gaining 7.45% for the week through Thursday.

Trading has been dominated by war headlines, including reports of tanker seizures and naval clashes. Comments from U.S. officials suggesting an unstable ceasefire situation triggered fresh buying, according to the OilPrice.com report. Despite recent OPEC+ production increases, traders see little immediate relief as logistical disruptions persist, forcing suppliers to reroute cargoes around Africa at higher shipping costs and longer travel times.

For Bakken operators, the rally directly improves wellhead economics. With WTI approaching $100, local Bakken crude prices are correspondingly stronger, even with the existing differential. This price environment supports continued drilling and completion activity in the Williston Basin, bolstering cash flow for producers and royalty owners.

Additional market context came from a summit between former U.S. President Donald Trump and China's Xi Jinping. Rigzone reported that oil prices steadied on Thursday following their discussions on Iran and energy trade, indicating how geopolitical diplomacy remains a key price driver. Furthermore, the U.S. Energy Information Administration released its latest oil price forecasts in its May Short-Term Energy Outlook on Friday, though specific figures were not provided in the summary.

The combination of sustained supply disruption and persistent geopolitical risk is likely to maintain a bullish floor under prices in the near term. For North Dakota's oil industry, the current price strength represents a favorable operational backdrop, though market participants remain watchful for any developments that could alter the fragile supply picture.