Global Oil and Gas Energy News for Wednesday, 4th February 2026: Oil and Gas, Electricity, Renewable Energy, Coal, Oil Products and Refineries. Key Events and Trends in the Global Energy Market for Investors and Industry Participants.
Global news from the oil, gas, and energy sectors for Wednesday, 4th February 2026 covers key events in the oil and gas industry, electricity generation, renewable energy (RE), the coal industry, as well as the situation in oil products markets and refinery operations. The beginning of February 2026 occurs against a backdrop of extreme winter conditions and significant geopolitical shifts, impacting the markets for oil, gas, electricity, and other energy resources. Investors and market participants in the energy sector are closely monitoring developments, assessing the impact of weather anomalies, sanctions policies, and new trading alliances on the fuel and energy complex.
- Extreme cold in the United States has led to a temporary reduction in oil (~15%) and gas (~16%) production; output is gradually recovering.
- Oil prices (Brent ~ $65/barrel) have stabilised following a recent spike; OPEC+ has extended production limits until March 2026.
- The US-Iran confrontation has intensified, raising the risk of supply disruptions from the Middle East, despite separate diplomatic efforts regarding Ukraine.
- Natural gas prices in North America and Europe have surged due to freezing temperatures; gas reserves in the EU have fallen to minimal levels (~45% of storage capacity).
- Renewable energy has achieved a record share in Europe's electricity mix; however, the harsh winter has revealed the need for fossil fuel backup capacities and grid modernisation.
- The US is easing oil sanctions against Venezuela following a change in leadership; India will procure Venezuelan oil instead of Iranian. These moves open the path to increased oil exports from Venezuela to the global market.
Oil Market: Recovery of Production and Price Stability
The global oil market at the beginning of February displays relative equilibrium following a price spike at the end of January. The benchmark Brent, which had exceeded $70 per barrel at the height of geopolitical concerns, has returned to ~$65, while WTI is around ~$60 per barrel. The decline in prices followed the easing of supply disruption fears and the recovery of production after inclement weather.
Several factors are influencing prices:
- Seasonal Demand: The cold winter is driving increased fuel demand for heating. The rise in consumption of oil products (especially diesel) supports oil prices, partially offsetting the slowdown in the global economy.
- Geopolitics: The escalation of the US-Iran conflict increases the risk of export disruptions from the Gulf region. Washington's tough rhetoric and Tehran's retaliatory threats add a "risk premium" to oil prices.
- OPEC+: The alliance is avoiding increasing production amid fragile demand. Existing quotas have been extended into Q1 2026, preventing market oversaturation and supporting prices during high winter consumption.
- Financial Factors: A weak dollar makes commodities cheaper for holders of other currencies, attracting investors. Hedge funds have increased long positions in oil, signalling a return of speculative demand.
The cumulative impact of these factors is keeping oil prices above recent lows. However, the International Energy Agency warns that an oversupply of oil may arise in the second half of 2026, which could limit further price growth potential and maintain market caution.
Gas Market: Record Cold Depletes Storage
The global gas market is experiencing sharp price spikes under pressure from abnormal cold weather. Extreme conditions have disrupted fuel production in North America and triggered a surge in gas demand for heating in Europe.
Regional situations include:
- Europe: Prolonged cold has led to record withdrawals from underground gas storage (UGS). The EU's storage level has dropped to approximately 45% capacity – a multi-year low. However, a steady influx of LNG and gas from Norway and North Africa is currently preventing shortages, keeping spot prices in the range of €40–50 per MWh.
- USA: The cold has resulted in frozen wells and a spike in domestic prices. The Henry Hub hub exceeded $6 per MMBtu during the crisis, more than double the level at the start of winter. LNG exports temporarily decreased by nearly 50% due to terminal outages and redirection of some supplies to the domestic market, compelling the power sector to switch to coal and oil.
- Asia: Major Asian consumers (China, Japan, South Korea) are currently avoiding gas shortages. A mild winter and long-term LNG contracts have spared the region from disruptions, keeping price increases in check. Competition with Europe for spot LNG remains limited, leading to lower Asian prices compared to Europe.
In the coming weeks, weather will be decisive in determining gas market dynamics. A mild end to winter will lower prices, while a new cold front threatens to push them up again. Following the season's conclusion, Europe will need to replenish depleted storage, competing for LNG with Asia – this will maintain upward pressure on prices.
Geopolitics: Sanctions and Middle Eastern Tensions
Geopolitical factors continue to impact the energy sector. The West maintains strict sanctions against Russia, while tensions around Iran are escalating in the Middle East.
The US has intensified pressure on Tehran: President Donald Trump has dispatched an aircraft carrier group to Iran's shores and threatened a strike. In response, Tehran has pledged to consider any attack as "total war." This escalation raises the risk of oil export disruptions from the Gulf region and unsettles markets.
The European Union has ceased imports of Russian pipeline gas entirely as of 2026, and the oil embargo restricts Russia’s oil exports, forcing Moscow to sell to Asia at significant discounts. In late 2025, the US expanded sanctions by adding major Russian oil and gas companies to the list.
Energy Trade: New Routes and Alliances
The restructuring of global energy trade continues amid sanctions pressures and shifting priorities. Countries are establishing new routes and partnerships to meet their needs:
- Russia – China: Moscow is redirecting exports of oil, gas, coal, and electricity to the east. Deliveries to China and other Asian countries are increasing, partially compensating for losses in the European market.
- Europe and Partners: The EU is diversifying its energy import sources, increasing gas purchases from Norway and Algeria, and oil from the Middle East and Africa. Instead of Russian petroleum products, supplies from India and Gulf states are increasingly used. European refineries have adapted to work with the new raw materials, significantly reducing dependence on Russia.
- India – Venezuela: New Delhi, with Washington's support, is replacing part of its Iranian crude with Venezuelan oil, taking advantage of the easing of sanctions against Caracas. This accelerates Venezuela’s return to the global market and provides India with a stable source of heavy crude oil.
Electricity and Coal: Grids under Strain
Abnormal cold has put power systems in the northern hemisphere under extreme stress. The surge in electricity consumption amidst reduced gas supplies has forced several countries to urgently activate backup coal and oil generation capacity.
- USA: Record demand has led to the introduction of emergency measures and the activation of backup diesel generators and coal plants, allowing the avoidance of blackouts at the cost of increased fuel combustion.
- Europe: Electricity demand has reached winter peaks, and some countries have temporarily restarted idled coal-fired power plants to manage peak periods. Coal usage locally has increased despite the overall declining trend. Simultaneously, limited grid capacity has compelled wind farms to reduce output during excess production, raising prices at other times.
Experts urge for the acceleration of grid modernisation and the implementation of energy storage systems to reduce reliance on coal and oil during emergencies and improve supply reliability.
Renewable Energy: Progress and Transition Challenges
The transition to clean energy continues to accelerate worldwide. The year 2025 marked a record increase in renewable energy capacity, strengthening the position of renewable sources in the energy balance.
- In the EU, the share of wind and solar energy in 2025 for the first time reached 30% of total electricity generation, surpassing contributions from fossil fuels (29%).
- China and India have also introduced record amounts of solar and wind power plants, thus for the first time in decades slowing the growth of CO2 emissions in the power sector. Investment in "green" projects is expected to remain high in 2026 as well.
Overall, the course towards decarbonisation remains, but the recent crisis has demonstrated the critical importance of backup capacities. Governments and companies are seeking a compromise between accelerated renewable energy development and maintaining sufficient traditional capacities to ensure peak load coverage.
Russian Oil Products Market: Extension of Stabilisation Measures
The domestic fuel market in Russia stabilised by the beginning of 2026 following last year's upheavals. In autumn 2025, prices for petrol and diesel surged sharply due to tax reforms and a spike in exports, but government intervention (export bans and subsidies for refiners) halted price growth at fuel stations.
The government has extended these measures: the fuel export ban and subsidies for refineries remain in force to saturate the market, stabilising prices at the beginning of the year.
Authorities are prepared to continue manual regulation to prevent a new fuel crisis but are discussing a phased lifting of restrictions as the market balances — avoiding storage oversaturation. The balance of interests between consumers and fuel and oil companies is maintained administratively: the role of the state in keeping domestic prices down remains crucial.
Market Expectations and Conclusions
Despite the upheavals, global energy markets enter February 2026 without panic. Short-term factors (weather and politics) maintain price volatility, but the balance of supply and demand remains sturdy. OPEC+ adheres to a cautious strategy, avoiding oil shortages; barring new shocks, oil prices are likely to hold around $60–65 per barrel until the cartel's spring meeting.
In the gas market, much depends on weather conditions: a mild end to winter will soften prices, while a new cold front could push them up again. Europe will need to replenish depleted gas storage before the next heating season, competing with Asian LNG importers — this will keep prices elevated.
Investors are closely monitoring the political agenda. Any changes in sanctions (against Iran, Russia, or Venezuela) or progress in negotiations will be immediately reflected in the markets. In uncertain conditions, companies prefer to hedge their risks.
In the long term, the industries must reconcile climate goals with energy security objectives. The year 2026 will be a time for seeking compromises: while continuing the "green" agenda, countries and corporations need to maintain adequate fossil fuel backup capacities for reliable energy supply.
