Oil Prices Surge Over 4%, Brent Tops $88; Bakken Discount Widens

Oil prices posted sharp gains on Saturday, July 18, 2026, with both major benchmarks rising more than 4%. West Texas Intermediate (WTI) crude settled at $81.78 per barrel, a gain of $3.50 for the session. Brent crude closed at $88.10 per barrel, up $3.87.

The rally extended a strong week for crude, driven primarily by escalating geopolitical tensions in the Middle East and signs of tightening global inventories. These factors have overshadowed broader economic concerns, fueling a bullish sentiment across energy markets.

For Bakken producers, the rise in the headline WTI price is a positive signal. However, the discount for Bakken crude at the wellhead compared to WTI, known as the Bakken differential, widened to -$3.42 per barrel. This means Bakken crude is priced at a deeper discount relative to the benchmark, which can offset some of the gains from the overall price surge. The effective price for Bakken crude would be approximately $78.36 per barrel based on the current differential.

The significant weekly increases highlight market sensitivity to supply risks. Analysts point to ongoing instability in key oil-producing regions as a primary catalyst. Any further disruption to seaborne crude flows could sustain price pressure in the coming sessions.

For operators in the Williston Basin, the current price environment above $80 WTI supports economic drilling and completion activity. While the widened differential represents a local market challenge, the elevated absolute price still provides a favorable revenue environment for many shale plays, including the Bakken. Operators will continue to monitor the differential closely, as pipeline capacity and regional refining demand are key factors in determining the netback price received.

Natural gas prices also saw a modest increase, with the benchmark settling at $2.91 per MMBtu, up $0.05. This offers a marginal boost for operators with significant associated gas production in the Bakken formation.