US oil output fell the most in 2 years during January winter storm, EIA data shows

SEATTLE (Oil Monster): U.S. crude oil output fell by the most in two years during January following a severe winter storm that knocked production offline in large swathes of the country, data from the Energy Information ​Administration showed on Tuesday.

U.S. crude oil output fell 410,000 barrels per day month over ​month in January to 13.25 million bpd, the lowest since February 2025, the ⁠EIA data showed.

 Total U.S. crude oil and petroleum products consumption, meanwhile, fell 201,000 bpd to 20.7 million ​bpd in January, the lowest since November 2025, the EIA said.

Demand for gasoline fell sharply during January's ​winter storms. Product supplied, the EIA's measure of demand, for finished motor gasoline fell 501,000 bpd month over month to 8.3 million bpd, the lowest since January 2022.

Retail gasoline prices crossed $4 a gallon on Monday as the Iran war upended global ​oil markets, which could add more pressure to fuel demand in the U.S. going forward.

Demand for distillate ​fuels, which include diesel and heating oil, surged in January as consumption for power generation and space heating ‌rose due ⁠to unusually low temperatures.

Distillate fuel product supplied averaged 4.03 million bpd in January, up 213,000 bpd month over month, the biggest increase in a year, the EIA data showed.

 The surge in consumption during January reduced U.S. distillate fuel inventories in key consumption centers in the Northeast and Midwest ​just ahead of the Iran ​war, leaving diesel ⁠markets tighter than usual and contributing to a sharp increase in prices for the industrial fuel.

Also in January, U.S. Gulf Coast refiners imported the most crude ​oil from Venezuela since March last year, the EIA said. U.S. Gulf ​Coast imports ⁠from the South American country rose to 6.2 million bpd in January from 3.8 million bpd in December, the data showed.

U.S. forces captured Venezuelan leader Nicolas Maduro on January 3 after a weeks-long naval blockade ⁠of ​the South American country.

Following Maduro's capture, the U.S. government issued ​new general licenses allowing traders Vitol and Trafigura to join oil major Chevron in exporting Venezuelan oil under a deal with ​the Delcy Rodriguez administration.

 Courtesy: www.reuters.com