The sharp decline in stocks highlights the immediate impact of severe winter weather on the American energy sector. Domestic production tumbled by 481,000 barrels a day, settling at 13.2 million barrels a day as freezing temperatures disrupted operations. This supply squeeze left total commercial inventories roughly 4% below the five-year average for this time of year.
In section Market Quotes
U.S. Crude Stocks Drop as Winter Storm Fern Disrupts Production
U.S. crude oil inventories fell by 3.5 million barrels last week as production freeze-offs caused by Winter Storm Fern outweighed a surge in imports. According to data released Wednesday by the Energy Information Administration, commercial stockpiles dropped to 420.3 million barrels for the week ended Jan. 30, defying analyst expectations of a neutral reading.
Refining and Logistics Shifts
The logistical strain extended to the Cushing, Oklahoma delivery hub, where stocks dipped by 743,000 barrels to 24 million. Meanwhile, refinery activity slowed slightly to 90.5% capacity as crude input dropped to 16 million barrels a day. To bridge the production gap, crude imports rose by 558,000 barrels a day, while exports saw a corresponding decline of 542,000 barrels a day.Inventory shifts for the week ended Jan. 30 included:
- Crude Oil: -3.5 million barrels
- Distillate Fuels: -5.6 million barrels
- Gasoline: +685,000 barrels
- Strategic Petroleum Reserve: +214,000 barrels
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