WTI Falls 3.9% as Oil Prices Retreat; Bakken Differential at $-3.42

North Dakota crude producers opened the week with lower oil prices and a slightly higher natural gas benchmark. WTI Crude traded at $87.32, down $3.51 or 3.86%, while Brent Crude fell $4.41, or 4.49%, to $93.91. Natural Gas rose $0.07 to $3.07. The Bakken differential stood at $-3.42 versus WTI.

The decline in crude came amid an OilPrice.com headline that said oil prices fell after Trump signaled no new attacks on Iran. The same OilPrice.com coverage also pointed to easing European energy prices, with European natural gas futures dropping from over €100 per MWh to €86.80, likely reflecting renewed optimism about the Middle East after Democrats won control of both houses in the United States.

For Bakken operators, the immediate impact is straightforward: lower benchmark crude prices reduce revenue per barrel at the wellhead, while the Bakken differential shows the local price discount against WTI. Royalty owners also watch that spread because it affects the net realized value of North Dakota barrels.

Natural gas markets told a different story. The $0.07 rise in the gas benchmark to $3.07 may provide modest support for producers selling associated gas, but global gas signals remain mixed. OilPrice.com reported China is importing less LNG despite the start of peak demand season because abundant domestic gas supply has lowered prices. China’s national average LNG price stood at $21.97 per million British thermal units, almost $10 below the Japan/Korea Marker benchmark, according to OilPrice.com.

That domestic relief in China comes against a backdrop of tight global LNG pricing. Asian spot LNG prices topped $30 per mmBtu in late October for the first time since December 2022, and the latest close was $31.49 per mmBtu, OilPrice.com reported. The report said continued disruption in Qatar’s LNG exports and a growing imbalance between global demand for the fuel and supply have kept prices elevated, despite soaring U.S. exports.

In Europe, the pressure may continue into winter. OilPrice.com reported Denmark-based trader Mind Energy said low hydropower reservoir levels and soaring natural gas prices are putting upward pressure on Nordic power prices. The firm said southern Norway’s NO2 price area has not had as little water in its reservoirs in 30 years. Gas prices are at their highest since the end of 2022, and lower hydropower potential could make Nordic power prices volatile this winter, according to OilPrice.com.

For Bakken operators, the broader takeaway is that oil prices are moving lower while gas markets remain sensitive to weather, inventory and geopolitical risk. The Bakken differential of $-3.42 versus WTI is a key metric for field-level economics, and the small rise in natural gas to $3.07 offers a partial offset if operators are marketing associated gas. But with crude down sharply and global gas signals mixed, operators and royalty owners will be watching whether oil weakness persists or whether winter demand in Europe and Asia pulls energy prices back up.