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WTI Slips Near $68.50 as Bakken Discount Widens to $3.42 - Bakken Wire
Oil Prices

WTI Slips Near $68.50 as Bakken Discount Widens to $3.42

Mixed price action follows EIA report of a nearly 4-million-barrel crude inventory draw.

Bakken Wire Staff·🌅Afternoon Wire·

West Texas Intermediate (WTI) crude oil traded lower Thursday afternoon, while the discount for Bakken crude widened. The front-month WTI contract was at $68.47 per barrel, down 11 cents on the day, according to live price data. The global benchmark Brent crude saw a marginal gain, trading at $71.60.

The price for Bakken crude at the Clearbrook, Minnesota, hub was discounted by $3.42 per barrel compared to WTI, a key spread watched by North Dakota producers. Natural gas prices also saw slight downward pressure, with Henry Hub futures at $3.21 per MMBtu.

The day's trading was influenced by fresh U.S. inventory data. According to a report from Rigzone citing the U.S. Energy Information Administration's weekly status report, crude oil stocks, excluding the Strategic Petroleum Reserve, fell by almost 4 million barrels for the week ending June 26. Total commercial inventories stood at 408.4 million barrels.

This substantial drawdown, typically a supportive factor for prices, provided a floor under the market but failed to spur significant gains. The mixed reaction suggests traders are weighing tightening physical supplies against broader macroeconomic concerns that could dampen future demand.

For Bakken operators, the wider local differential of -$3.42 represents a direct headwind to realized prices. With WTI hovering in the high-$60s, a discount of that size pressures cash flows and can influence decisions on well completion timing and operational spending. The inventory draw may signal healthier downstream demand, which could help stabilize differentials in the coming weeks.

In natural gas, prices held near the $3.20 level. Separate industry sentiment data, also reported by Rigzone, shows executives are looking ahead. The second-quarter Dallas Fed Energy Survey revealed predictions from oil and gas firm executives on where the Henry Hub natural gas price will land at various future points.

The current stable, albeit soft, price environment provides some predictability for gas-producing operators in the Bakken, where gas is often a associated byproduct of oil drilling. However, long-term development plans may be shaped by the price expectations highlighted in the executive survey.

Overall, the market appears balanced between supportive inventory data and persistent caution. Bakken producers will monitor whether the inventory trend continues and if the Bakken-to-WTI differential narrows from its current level, which would improve netbacks on every barrel sold.

Source

Live price data, Rigzone (EIA inventory report, Dallas Fed Energy Survey summary)

oil priceswtibakken differentialcrude inventorieseianatural gashenry hub

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