WTI Holds Losses As Freezing Temps Sparked Massive Drop In US Production

Crude oil prices are moderately declining due to geopolitical tensions in the Middle East and a mixed picture of US stockpiles. Indirect negotiations between the US and Iran over the nuclear program are scheduled to begin. Equinor highlights that geopolitical tensions are influencing oil prices, obscuring the underlying balance. The API reported a significant crude draw, influenced by freezing weather across the US. However, the DOE reported a smaller crude draw. Distillates saw a large drawdown, with the biggest since February 2021, driven by increased heating oil demand on the East Coast. Crude production in the Lower 48 dropped to its lowest point since November 2024. NGL output also significantly declined, indicating a substantial impact of the weather on the gas market. The smaller crude draw, as reported by the DOE, may have contributed to price declines . Ongoing tensions between the US and Iran are a critical factor in the market. A US flagged merchant ship was harassed in the Strait of Hormuz. PVM Oil Associates reflects the impact of the cold spell in the US.