WTI Crude Surges Past $97 on Sharp U.S. Inventory Draw
Bakken crude differential holds steady as a significant weekly stock decline fuels bullish sentiment and prices.
Oil prices climbed sharply on Thursday, with West Texas Intermediate (WTI) crude rising over 2% to breach $97 per barrel. The rally was supported by U.S. government data showing a larger-than-expected drawdown in nationwide crude inventories.
As of midday Thursday, WTI crude was trading at $97.10 per barrel, a gain of $2.02. The international benchmark Brent crude was at $102.63, up $1.36. North Dakota Bakken crude traded at a differential of $3.42 below WTI, pricing it at approximately $93.68 per barrel. Natural gas also saw gains, rising $0.05 to $2.78 per MMBtu.
The price surge follows a U.S. Energy Information Administration report showing a significant decrease in commercial crude stocks. According to Rigzone, crude oil inventories, excluding the Strategic Petroleum Reserve, fell to 457.2 million barrels for the week ending May 1. This represents a draw of more than 2 million barrels from the previous week, tightening physical supplies.
The inventory data provided fundamental support for the market, overshadowing broader political uncertainties. In a separate analysis cited by Rigzone, Rystad Energy Chief Oil Analyst Paola Rodriguez-Masiu noted that the physical oil market operates independently of political timelines. This underscores that immediate supply and demand fundamentals, like the weekly stock draw, remain primary price drivers.
For Bakken operators, the price move is a direct boost to revenue. With WTI above $97, the local Bakken price near $93.70 provides strong economic incentive to maintain and potentially increase production. The stable differential of -$3.42 versus WTI indicates consistent market demand for the region's light sweet crude.
The combined price strength and inventory draw suggest a tight physical market, which typically supports higher drilling and completion activity in the months ahead. For royalty owners and state tax revenues, the higher price environment translates into increased monthly checks and severance tax collections.
The market's focus now shifts to upcoming OPEC+ meetings and summer demand trends, but today's action was squarely focused on the tangible reduction in U.S. oil stocks.
Source
LIVE PRICE DATA; Rigzone reports "USA Crude Oil Stocks Drop by More Than 2MM Barrels WoW" published May 7, 2026; Rigzone reports "Physical Oil Market Does Not Run on Political Timelines" published May 7, 2026.
