Oil Prices Tumble, WTI Drops $3.70 as Bakken Discount Widens

Oil prices fell sharply on Wednesday, with the U.S. benchmark posting a significant loss. West Texas Intermediate (WTI) crude closed at $102.13 per barrel, down $3.70 or 3.5%, according to live price data. The international benchmark, Brent crude, settled at $105.56, a drop of $3.19 or 2.93%.

The price move widened the discount for Bakken crude. The Bakken differential weakened to negative $3.42 per barrel versus WTI, meaning Bakken crude traded at a deeper discount to the benchmark.

Natural gas prices saw a more modest decline, settling at $2.89 per barrel, down $0.03.

The sell-off in crude coincided with a report highlighting the rapid expansion of shale oil production from a major global competitor. According to OilPrice.com, Argentina's oil production hit a record 902,920 barrels per day in July 2026, a 12% increase from a year earlier. The growth is entirely driven by the Vaca Muerta shale formation.

Shale oil production from Vaca Muerta specifically rose to an all-time high of 648,347 barrels per day in July, up 26% year-over-year. The source reported that shale oil now comprises a record 72% of Argentina's total petroleum output. The report notes that Vaca Muerta is already the world's second-most productive shale play after the Permian Basin in the United States.

For Bakken operators in North Dakota, the day's price action presents a dual challenge. The steep drop in the WTI benchmark directly lowers the revenue per barrel. The widening of the Bakken differential compounds the issue, meaning Bakken crude is being priced at an even greater discount to the already-falling benchmark. This squeezes margins for producers across the Williston Basin.

The news from Argentina underscores the global nature of the shale revolution and the constant pressure from competing supply sources. While the Bakken formation remains a core part of the U.S. shale portfolio, the rapid ascent of Vaca Muerta highlights how international shale plays are becoming increasingly significant contributors to global oil flows. This growing supply from outside traditional OPEC+ jurisdictions can influence market sentiment and price volatility.