US oil industry hit by deep freeze, gas prices surge

The sharp drop in temperatures has led to wells freezing and problems emerging in pipeline operations.

Although global oil inventories remain high for now, limiting price increases, the market is closely watching for potential supply cuts.

The hardest hit has been the Williston Basin in North Dakota, where output has already fallen by about 7%. Experts warn that further cold weather could delay the restart of wells for several weeks.

The Permian Basin in Texas, a ключ region for the U.S. oil industry, is also at risk. If freezing conditions persist, traders do not rule out losses of up to 2–3 million barrels per day.

At the same time, the oil market’s reaction has remained relatively muted. Analysts note that the drop in production is partly offset by weaker demand from refineries, which are also scaling back operations because of the cold.

Logistical risks are adding to the pressure: severe weather has disrupted the operation of key pipelines, and prolonged shutdowns could lead to fuel shortages on the US domestic market.

Against this backdrop, the natural gas market has reacted far more sharply. Henry Hub futures have risen by about a quarter over the past week, driven by record demand for heating.

Oil price dynamics

Earlier, RBC-Ukraine, citing Bloomberg, reported that global oil prices began to rise amid a weaker US dollar, which had fallen to its lowest level in the past seven months. Brent crude climbed above $65 per barrel.

Tensions in relations between Venezuela and Iran, as well as supply disruptions from Kazakhstan, have helped support oil prices since the start of the year, following an 18% drop in 2025. However, futures remain under pressure amid concerns that the market is heading toward oversupply.

A day earlier, the outlet reported that prices for Russian oil had fallen to unprecedented lows after India refused to purchase it.