Oil Prices Surge Over 1.5% on OPEC+ Supply Signals

Oil prices posted strong gains in early trading Thursday, with Brent crude topping $105 per barrel and West Texas Intermediate (WTI) closing in on $94. The rally was primarily driven by signals from OPEC+ member nations suggesting a willingness to take further action to support the market.

According to Reuters, sources within the OPEC+ alliance indicated the group could consider additional production cuts if oil prices continue to slide. This statement provided a firm floor under prices, triggering the day's rally. The North Sea Forties pipeline system, a key conduit for Brent crude, also reported a significant maintenance-related reduction in loadings, tightening immediate supply for the benchmark.

At market close, WTI crude settled at $93.69 per barrel, a gain of $1.53 or 1.66%. The international benchmark, Brent crude, rose to $105.05, adding $1.97 for a 1.91% increase. Natural gas prices saw a modest rise, adding $0.02 to reach $3.17 per MMBtu.

For Bakken operators, the price of their crude is benchmarked against WTI, minus a regional differential. Today, the Bakken differential was reported at $-3.42 per barrel versus WTI. This means Bakken crude is priced at approximately $90.27 per barrel at the wellhead, before transportation costs. The strengthening in the underlying WTI benchmark directly translates to higher netbacks for producers across the Williston Basin.

The price surge offers a continued favorable economic environment for drilling and completion activity in North Dakota. Sustained prices above $90 WTI support cash flow and reinvestment for operators. The movement also highlights the ongoing influence of OPEC+ supply management on the global market, a factor that can quickly shift the revenue calculus for independent Bakken producers.

While near-term supply concerns are supporting prices, traders continue to monitor broader economic indicators and inventory levels. The upcoming weekly U.S. crude inventory report will provide the next signal for market direction. For now, the OPEC+ rhetoric has successfully countered recent bearish sentiment, providing a boost to oil-producing regions like the Bakken.