WTI Surges Past $101 as Supply Fears Drive Weekly Rally

U.S. oil prices surged over 4% on Friday, with West Texas Intermediate crude topping $101 per barrel, as ongoing supply disruptions in the Middle East continued to tighten the global market. WTI settled at $101.02, a gain of $4.10, while the international benchmark Brent crude rose $3.54 to $109.26, according to live price data. The price for Bakken crude at the Clearbrook hub held at a discount of $3.42 per barrel versus WTI.

The weekly rally, which saw WTI gain approximately $10, is primarily driven by the continued closure of the Strait of Hormuz, a critical chokepoint for global oil shipments. This geopolitical tension has overshadowed other market factors, leading to a sharp drawdown in U.S. strategic stocks. According to a report from OilPrice.com, inventories in the Strategic Petroleum Reserve have fallen roughly 30 million barrels since late March, dropping below 385 million barrels.

In response to the drawdown, the Trump administration has pledged to refill the SPR and add more than it withdraws. Energy Secretary Chris Wright stated on Friday that the plan is to add 1.2 barrels to the reserve for every barrel taken out during the current emergency period, according to OilPrice.com. This commitment, which could imply purchasing an additional 36 million barrels, is seen as creating future demand that could provide a price floor and support domestic producers.

The higher price environment is already prompting a supply response. The U.S. oil rig count rose by five this week to 415, according to Baker Hughes data published Friday and reported by OilPrice.com. Furthermore, the number of crews completing wells, as measured by Primary Vision's Frac Spread Count, rose to 179—its highest level since November. U.S. crude production for the week ending May 8 averaged 13.710 million barrels per day, just 152,000 bpd under the all-time high.

For Bakken operators, the combination of strong outright prices and a stable local differential is a positive signal for cash flow and drilling budgets. The active rig count in the Williston Basin region was not specified in the latest report, but the national increase suggests a favorable environment for adding activity. The administration's SPR refill pledge represents a potential long-term source of demand for domestic crude, including barrels from North Dakota.

The broader market outlook remains elevated due to supply risks. While the U.S. Energy Information Administration released its latest short-term energy outlook on May 15, specific price forecasts from that report were not detailed in the provided summary from Rigzone. The current price strength, however, reflects immediate physical market tightness that benefits Bakken producers.