Oil Prices Surge Past $103 as U.S. Inventories Tighten
WTI crude jumps over 3.5% on a larger-than-expected inventory draw, while high freight costs continue to impact global crude flows.
U.S. crude oil prices surged above $103 per barrel on Wednesday, October 28, 2026, propelled by another weekly decline in domestic inventories. West Texas Intermediate (WTI) crude was trading at $103.38, a gain of $3.48 or 3.48%, according to live price data. Brent crude, the global benchmark, rose to $112.50.
The price rally follows new data from the U.S. Energy Information Administration (EIA) showing commercial crude oil inventories fell by 1.9 million barrels in the week ending October 23. According to OilPrice.com, this draw brings total stockpiles to 410.6 million barrels, which is now 4% below the five-year average for this time of year. The draw was slightly larger than the 2.031 million-barrel decrease reported a day earlier by the American Petroleum Institute.
For Bakken producers, the price strength is tempered by a regional discount. The Bakken differential was quoted at -$3.42 versus WTI, meaning Bakken crude at the wellhead is priced just under $100 per barrel. The inventory data showed continued strength in overall demand, with total products supplied averaging 20.8 million barrels per day over the last four weeks, up 0.2% year-over-year.
Meanwhile, global market dynamics are being reshaped by extreme freight costs. According to a separate OilPrice.com report, Chinese refiners are turning to West African and Brazilian crude after a slight easing in shipping rates. Freight rates from the U.S. Gulf Coast to China had soared to as high as $80 million for a supertanker earlier in October, making U.S. crude uneconomical for many Asian buyers.
While rates have eased from record highs, the cost to ship crude from the U.S. Gulf Coast to Asia was still about $60 million last week, the report stated. This has led Chinese "teapot" refiners to seek alternatives like Angola's Saturno and Brazil's Mero crude, purchased at premiums of up to $20 per barrel above Brent.
The high Atlantic freight rates and intense competition for Russian barrels with India have created a segmented global market. For Bakken operators, these logistics costs indirectly affect the competitiveness of U.S. light sweet crude in key overseas markets, potentially limiting export opportunities and keeping more supply domestic.
The EIA report also noted a significant 3.9 million-barrel build in gasoline inventories, though distillate stocks fell by 1.5 million barrels and are now 10% below the five-year average. Natural gas prices also saw a modest increase, trading at $3.07, up $0.07 on the day.
Source
Live Price Data, OilPrice.com (US Oil Inventories Fall Again As Prices Rise, published 2026-10-28), OilPrice.com (China’s Refiners Turn to Africa and Brazil Crude as Freight Rates Ease, published 2026-10-28)
