WTI, Brent Hold Above $91 and $104 as U.S. Crude Stocks Decline

Crude oil prices held firm in midday trading Friday, with West Texas Intermediate and Brent crude maintaining levels above $91 and $104 per barrel, respectively. According to live price data, WTI was trading at $91.88, a gain of $0.39 or 0.43% on the day. The global benchmark, Brent crude, was at $104.48, up $0.20.

The price support follows a U.S. government report showing a significant drawdown in commercial crude inventories. According to Rigzone, citing data from the Energy Information Administration, commercial crude oil stocks, excluding the Strategic Petroleum Reserve, fell to 424.134 million barrels for the week ending October 2. This represents a drop of over 3 million barrels from the prior week.

This larger-than-expected inventory decline is a key fundamental driver for prices, indicating stronger demand or tighter supply than anticipated. The draw has helped offset other macroeconomic concerns, keeping crude futures in positive territory.

For Bakken producers, the strength in the headline WTI price is tempered by the region's specific discount. The Bakken differential to WTI was quoted at -$3.42 per barrel. This means Bakken crude at the wellhead is priced approximately at $88.46. While the differential represents a cost of doing business in the region, the overall higher price environment remains a net positive for operator cash flow and drilling economics.

Natural gas prices also saw upward movement, with the benchmark adding $0.04 to reach $3.21 per MMBtu. This provides a modest boost for producers with significant associated gas production in the Bakken formation.

The current price structure, with Brent holding a premium of over $12 to WTI, continues to make U.S. crude, including Bakken barrels, competitive in the global export market. Sustained inventory draws, if they continue, could provide further support to domestic prices.

For royalty owners and operators in North Dakota's Williston Basin, the midday pricing reflects a stable but watchful market. The inventory data provides a bullish signal, but traders remain attentive to broader economic indicators and geopolitical developments that could influence direction into the weekend.