Oil Prices Surge Over $101 Amid SPR Refill Plan, Bakken Differential Widens

Oil prices posted strong gains in midday trading Saturday, with West Texas Intermediate crude surpassing $101 per barrel. According to live price data, WTI settled at $101.02, a gain of $4.10 or 4.23 percent. Brent crude reached $109.26, up $3.54. The price for Bakken crude, a key benchmark for North Dakota producers, traded at a differential of -$3.42 versus WTI.

The price rally follows a pledge from the Trump administration to aggressively refill the Strategic Petroleum Reserve. According to a report from OilPrice.com, Energy Secretary Chris Wright stated on Friday that the plan is to add 1.2 barrels to the SPR for every barrel withdrawn during the current emergency drawdown period. The Secretary said the goal is to leave the reserve "fuller than when we started."

The SPR inventory has fallen sharply in recent weeks due to Middle East supply disruptions, according to the source. After climbing to over 415 million barrels this spring, inventories have dropped back below 385 million barrels—a dip of roughly 30 million barrels since late March. At the pledged ratio of 1.2 barrels for each barrel withdrawn, the administration has tasked itself with replenishing 36 million barrels, a move that will create additional demand in the market.

Governments typically buy oil for the SPR when prices are lower, the source noted, raising practical questions about the timing and market impact of such a large refill program. The added demand from purchasing an additional 36 million barrels is expected to place additional upward pressure on oil prices.

The U.S. Energy Information Administration also revealed its latest oil price forecasts in its May Short-Term Energy Outlook on Friday, according to a summary from Rigzone. While specific forecast numbers were not provided in the summary, the EIA's regular outlooks are a key indicator for market direction.

For Bakken operators, the surge in the underlying WTI price to over $101 is a positive signal, though the widening negative differential of -$3.42 means Bakken crude is selling at a deeper discount to the benchmark. This differential reflects local transportation costs and market factors specific to the Williston Basin. The administration's SPR refill plan, which implies sustained or increased government buying, could support longer-term price stability for producers.

The current price strength and policy announcements come amid ongoing geopolitical tensions around the Strait of Hormuz, which have contributed to supply concerns and the recent SPR withdrawals.