North Dakota Oil Fetches High Premium Amid Global Supply Disruptions

A pricing anomaly in May led to North Dakota collecting an estimated $29 million more in oil tax revenue, as crude oil produced in the state sold for an average of $2.56 more per barrel than the West Texas Intermediate oil price benchmark.

The last time this happened was in 1986, according to Justin Kringstad, director of the North Dakota Pipeline Authority, who also found small premiums occurring in two months in 2003 and 2004.

Oil supply disruptions due to the Iran war and the closure of the Strait of Hormuz contributed to this anomaly, causing prices for oil at hubs like the one at the end of the Dakota Access Pipeline to be significantly higher than the benchmark price.