A powerful winter storm swept across large parts of the United States over the weekend, putting pressure on energy infrastructure and power grids. The extreme cold forced several oil producers to shut down operations.
Industry estimates suggest that US oil producers lost up to 2 million barrels per day, which is around 15% of the country’s total oil output. Several refineries along the US Gulf Coast also reported weather-related disruptions, raising fears of short-term fuel shortages, as reported by Reuters.
If cold conditions continue, fuel inventories could fall further in the coming days, especially for heating oil, which has already seen sharp price rises due to strong winter demand.