WTI, Brent Steady as July Posts Strong Gains on Supply Concerns

Front-month oil prices held flat on Sunday, with West Texas Intermediate at $84.67 per barrel and Brent crude at $90.12 per barrel, according to live price data. The stability follows a month of significant gains driven by geopolitical tensions and tightening U.S. supplies.

Brent crude capped its strongest monthly gain since March in July, Rigzone reported. The surge was attributed to geopolitical conflicts raising concerns about global crude supplies. This provided underlying support to the global benchmark, which continues to trade at a premium to U.S. grades.

In the United States, a substantial drawdown in commercial inventories is tightening the domestic market. The U.S. Energy Information Administration's latest weekly report showed crude oil stocks, excluding the Strategic Petroleum Reserve, fell by more than 7 million barrels week-on-week to 404.5 million barrels as of July 24, according to Rigzone.

For Bakken operators, the key pricing metric is the differential to WTI. On Sunday, Bakken crude at the wellhead was priced at a discount of $3.42 per barrel versus WTI. This means Bakken crude is fetching approximately $81.25 per barrel. The steady WTI price combined with a stable differential provides predictable, strong cash flows for producers in the Williston Basin.

Internationally, a major pricing shift is underway that could influence global benchmarks. Abu Dhabi National Oil Co. (ADNOC), the state oil company of the United Arab Emirates, announced it will overhaul how it prices all of its crude oil grades, Rigzone reported on August 1. While the direct impact on Bakken crude is limited, such changes in how key Middle Eastern exporters price their oil can influence the Brent benchmark, which is linked to many international transactions.

The combination of a supportive global backdrop—marked by supply concerns and Middle Eastern pricing reforms—and a tightening U.S. inventory picture is creating a firm floor for prices. For North Dakota producers, the current environment translates to sustained operational viability. The monthly gains recorded in July underscore a market responsive to supply risks, which helps offset potential downward pressure from economic headwinds.

Market attention will now turn to upcoming OPEC+ policy meetings and weekly U.S. inventory data for further direction. The significant stock draw reported for late July suggests continued robust demand or constrained supply, factors that will be closely watched by Bakken operators planning their late-summer and autumn drilling programs.