WTI Retreats Near $97 as EIA Reports Inventory Draw

Front-month West Texas Intermediate (WTI) crude futures were trading lower Wednesday afternoon, down 0.82 percent to $97.02 per barrel. The global Brent benchmark showed relative resilience, dipping just 0.15 percent to $108.63. The price for Bakken crude at the Clearbrook, Minnesota, hub was assessed at a $3.42 discount to WTI, according to midday data.

The price pressure came despite a bullish weekly inventory report from the U.S. Energy Information Administration (EIA). According to the EIA, U.S. commercial crude oil inventories fell by 3.1 million barrels for the week ending October 16, 2026. The draw brings total stockpiles to 412.5 million barrels, which is now 3 percent below the five-year average for this time of year.

The government data followed an even larger reported draw of 4.93 million barrels from the American Petroleum Institute (API). Total product supplied, a proxy for demand, averaged 21.1 million barrels per day over the last four weeks, up 3.2 percent compared to the same period last year, the EIA reported.

Refined product inventories were mixed. Gasoline stocks fell by 3 million barrels after a build the prior week, while distillate inventories, which include diesel, increased by 1.7 million barrels. Distillate stocks remain 9 percent below the five-year average.

The midday price retreat suggests the market had largely priced in the inventory draw or is focusing on other macroeconomic factors. The decline in WTI outpaced that of Brent, slightly narrowing the spread between the two global benchmarks.

For Bakken producers, the current price environment remains highly profitable with WTI holding above $97. The Bakken differential of -$3.42 is within a typical range for the grade, ensuring strong netbacks for operators in the Williston Basin. The sustained demand signal from the EIA report, particularly for gasoline, supports the outlook for continued crude offtake.

In natural gas, the Henry Hub spot price was down significantly Wednesday, trading at $2.83 per MMBtu, a drop of $0.14. This adds pressure to operators with significant associated gas production in the Bakken, where gas often faces price discounts and takeaway constraints.