U.S. oil production fell in January by 2% to the lowest since September 2021, according to a monthly report from the U.S. Energy Information Administration (EIA) on March 31.

Oil production fell to 11.4 million bbl/d in January from 11.6 million bbl/d the month prior, the report showed.

Production in Texas fell to 4.9 million bbl/d, lowest since August 2021, while output in New Mexico fell to 1.3 million bbl/d, lowest since July 2021.

Oil prices have spiked around 40% since the start of the year, and trading has been volatile since Russia invaded Ukraine last month. However, shale producers have responded more slowly than during previous price rises, as investors and shareholders have demanded greater capital discipline from the industry than in previous boom-bust cycles.

U.S. President Joe Biden’s administration on March 31 announced a plan to release 1 million bbl/d of oil from the Strategic Petroleum Reserve over the next six months, the White House said in a statement.

Demand for U.S. crude and petroleum products fell in January to 19.7 million bbl/d, the lowest since April 2021, the monthly report showed. Demand for finished motor gasoline fell to about 8 million bbl/d, lowest since February 2021, the report said.

Monthly gross natural gas production in the U.S. Lower 48 states dropped 2.9 Bcf/d to 105.5 Bcf/d in January, its lowest since September 2021, the EIA said in its monthly 914 production report.

That was the biggest monthly decline since gas supplies dropped by a record 8.4 Bcf/d during the February freeze of 2021.

The previous all-time high was 108.4 Bcf/d in December.

In top gas producing states, monthly output fell 2% in Texas to 29.7 Bcf/d and 3.1% in Pennsylvania to 21.3 Bcf/d.

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