Domestic crude oil inventories dropped substantially for a second straight week for the week ended Feb. 12, the U.S. Energy Information Administration (EIA) said Thursday, as demand increased and production declined.

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Analysts said the surge in frigid weather that blasted the nation’s midsection this week and upended daily life in Texas – where energy infrastructure was not designed to withstand prolonged periods of freezing conditions – is bound to lead to EIA reporting another withdrawal in its next report.

Icy roads were limiting travel and curbing demand for gasoline in Texas and neighboring states, and refinery outages were hindering crude demand. But production was estimated to be down 40% at midweek due to power outages and frozen well operations, likely enough to...