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 barrels per day 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.
Meanwhile, 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.
(Reporting by Shariq Khan in New York; Editing by Chris Reese and Will Dunham)