WTI, Brent Rise on Major U.S. Inventory Draw

West Texas Intermediate crude oil rose above $97 per barrel in midday trading Friday, supported by a larger-than-expected drawdown in U.S. commercial inventories. WTI traded at $97.10, a gain of 75 cents or 0.78%, according to live price data. The global Brent benchmark climbed 1.02% to $103.60 per barrel.

The primary driver for the price increase was a significant weekly decline in U.S. crude stocks. According to Rigzone, citing the latest U.S. Energy Information Administration weekly petroleum status report, commercial crude oil inventories, excluding the Strategic Petroleum Reserve, fell by almost 8 million barrels for the week ending May 15. Stocks stood at 445.0 million barrels.

This substantial inventory draw suggests stronger near-term demand or tighter supply conditions than analysts anticipated, providing fundamental support for oil prices. The draw comes amid the peak summer driving season, which typically increases demand for refined products like gasoline.

For Bakken producers, the rising benchmark price is tempered by the region's differential. The Bakken differential was quoted at -$3.42 versus WTI on Friday. This means Bakken crude at the wellhead is priced approximately at $93.68 per barrel after accounting for the discount required to transport it to major hubs. While the differential represents a cost to producers, the overall strength in WTI directly boosts the netback price they receive.

In contrast to crude, natural gas prices saw downward pressure, trading at $3.03 per MMBtu, a decline of 13 cents. This divergence highlights the different market fundamentals for oil versus natural gas, with oil currently being driven by inventory and demand signals.

The inventory data and resulting price strength are a positive signal for operator cash flow in the Williston Basin. Higher sustained oil prices above $90 per barrel provide increased revenue that can support maintenance capital programs, debt reduction, or shareholder returns. However, operators remain sensitive to the Bakken differential, which can erode the benefit of rising benchmarks if it widens significantly.

Market attention will now turn to upcoming OPEC+ meetings and continued weekly inventory data to see if this supportive trend persists. For North Dakota, current prices well above breakeven costs for most wells continue to underpin a stable production environment.