U.S. Crude Stocks Drop as Winter Storm Fern Disrupts Production

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.

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

The impact was most pronounced in distillate fuel stocks, which plunged by 5.6 million barrels—more than double the 2.4 million barrel draw predicted by analysts. While gasoline inventories saw a modest build, the EIA report noted that gasoline demand fell by 604,000 barrels a day to 8.2 million, reflecting the broader slowdown in activity during the storm.