West Texas Intermediate (WTI) struggled to maintain momentum on Wednesday, retreating from an early peak of $64.17/bbl. By 11 a.m. ET, the March WTI contract shed 10 cents to trade at $63.11/bbl, while the April contract saw a similar decline. Conversely, Brent crude maintained its gains, with the April contract rising 31 cents to $67.64/bbl. Refined products remained volatile, with gasoline futures strengthening while diesel contracts traded mixed.

Supply Disruptions and Demand Shifts

The latest EIA report detailed a significant impact from recent winter storms. U.S. oil production fell by 481,000 barrels per day to 13.215 million b/d as freezing temperatures forced wellhead shutdowns in several producing regions. This disruption contributed to a 3.5 million-barrel drop in crude inventories, which now sit 4% below the five-year average. However, the market focused on a 700,000-barrel increase in gasoline stocks and a sharp decline in motor fuel demand.

The distillate market faced its own pressures as extreme cold drove heating demand. Distillate holdings dropped by 5.6 million barrels last week, roughly 2% below the five-year average. According to the agency, the surge in demand was partly fueled by power plants switching to diesel due to natural gas supply constraints.

• Gasoline demand fell by nearly 600,000 b/d to 8.153 million b/d.
• Distillate products supplied to the market rose by 242,000 b/d.
• Refinery utilization remained relatively stable, dipping only 0.5% to 90.5%.