Global News from the Oil, Gas, and Energy Sector for Wednesday, 28 January 2026: Oil and Gas, Electricity, Renewables, Coal, Refineries, and Key Trends in the Global Energy Sector for Investors and Market Participants.
Oil Prices and Market Factors
Global oil prices are exhibiting moderate fluctuations amid mixed factors. As of the morning of 28 January 2026, North Sea Brent crude is trading at approximately $65 per barrel, slightly below levels at the beginning of the week. Investors and oil market participants are closely monitoring the restoration of supplies from Kazakhstan: following the completion of repairs at the Caspian Pipeline Consortium terminal, Kazakhstan's crude oil exports are returning to full capacity. The news of the gradual resumption of production at the Tengiz field has alleviated concerns about supply shortages, applying downward pressure on oil prices.
Concurrently, geopolitics continues to impact the market. New US sanctions against Iran momentarily pushed prices higher, but this effect was countered by reports of increased supply from other producers. Meanwhile, oil companies and fuel companies are adapting to the new conditions, as OPEC+ countries maintain stable production levels to balance the market.
Notably, changes in demand structure have been observed: India reported a 28% decrease in imports of Russian oil and expressed a willingness to reduce it further by diversifying sources of raw materials. This signals a reshaping of trade flows—Russian refined products continue to enter global markets indirectly through intermediary countries; however, Russia's share in global oil supplies is gradually declining due to sanction pressure. Investors anticipate that, in the absence of a global downturn, demand for oil will remain relatively resilient.
Gas Market Influenced by Winter Weather
Gas markets at the beginning of 2026 are experiencing increased volatility due to anomalously cold weather. The so-called "Beast from the East" has returned to Europe—an influx of Arctic air that has led to a sharp rise in gas demand for heating. Prices for natural gas in the EU have significantly increased in recent days: prices at the TTF hub have risen from $450 to $500 per thousand cubic metres, and in regional markets in Northern Europe, prices briefly surpassed $600. For instance, in Finland, gas prices reached $680 per thousand cubic metres, illustrating the tension between supply and demand.
European energy companies are actively withdrawing gas from storage: the overall filling level of European gas storage facilities has dropped to approximately 46%, with some countries already down to 30–40% (for example, Germany at ~38% and the Netherlands at 32%). This level of reserves by the end of January raises concerns among market participants, especially considering that several months of the heating season remain ahead. Should severe cold persist in February and March, Europe could face fuel shortages.
High demand for LNG and consistent imports of pipeline gas from Norway are currently preventing an energy deficit in Europe. The situation is exacerbated by the fact that Russia has virtually stopped supplying gas to the EU via pipelines: following the cessation of most routes in 2022–2024, Russia's share in Europe is at a minimum. Furthermore, Gazprom has noted record gas consumption within Russia—amid severe cold, the company set a new daily record for domestic market deliveries (up to ~1839 million cubic metres on 25 January). This indicates that Russia's export capabilities are limited by domestic demand.
The United States is also experiencing anomalous cold spells, causing disruptions in gas production. Reports have emerged of well freeze-ups at certain fields, leading to a decrease in daily output and an increase in prices on the American natural gas market.
Energy Systems and Weather Catastrophes
Extreme weather conditions are testing the resilience of energy systems in various regions around the globe. In the United States, a powerful snowstorm at the end of January caused widespread power outages: over 1 million consumers were left without electricity during the peak of the storm, and even two days later, around 500,000 households were still without power. Electric utilities and authorities have been compelled to implement crisis measures— for example, some industrial enterprises in the eastern US are being offered compensation for temporarily reducing energy consumption to lessen the load on the grid and prevent widespread blackouts.
In Europe, winter is also presenting challenges; heavy snowfall and winds have caused power outages in Scandinavia and the Baltic states. For instance, in Finland, tens of thousands of homes were without electricity for several days at the beginning of the year. Energy companies have mobilised emergency crews and standby capacities to restore power as quickly as possible. The situation is complicated by high electricity demand for heating: during cold nights, the load on energy systems is hitting seasonal records. To prevent capacity shortages, authorities in some EU countries are even reactivating coal power plants as backup, despite environmental costs.
These events highlight the vulnerability of energy infrastructure in the face of climate anomalies. Electricity is becoming a critically important resource, with the reliability of networks taking centre stage. Many countries are discussing investments in infrastructure modernisation and the establishment of backup generation capacities. There is also a growing interest in distributed generation and energy storage to reduce reliance on central grids in emergencies.
Strengthening Sanctions and EU Energy Policy
The European Union continues its course towards complete cessation of dependence on Russian energy resources by introducing new sanctions and legislative restrictions. The European Commission has formally announced its intention to propose a total ban on the import of oil from Russia by the end of 2026. Thus, within a few months, an embargo encompassing the last channels for the supply of Russian oil may come into effect in the EU. Simultaneously, preparations are underway to phase out Russian nuclear fuel for nuclear power plants—while the specific timeline for this step has yet to be determined, it is clear that Brussels is keen to eliminate all Russian resources from its energy balance.
Moreover, EU countries have definitively approved a complete withdrawal from Russian gas by 2027 and have tightened the sanctions regime.
- Oil and Gas: A complete discontinuation of Russian oil is scheduled for the end of 2026; LNG imports will cease by the end of 2026, with pipeline gas cessation by autumn 2027.
- Penalties: Violations of sanctions are subject to fines of up to 300% of the transaction amount.
- Price Caps: The price ceiling on Russian oil has been lowered to $44.1 per barrel from February 2026.
These measures signal Europe's determination to expedite its energy divorce from Russia. European oil refineries have adjusted their logistics to accommodate alternative raw material sources— the EU is now increasing oil purchases from the Middle East and Africa, as well as stimulating supplies of refined products from India and other countries. In the gas sector, Europe is focusing on increasing LNG imports from the US, Qatar, and other partners, as well as developing its own renewable energy sources to replace gas. Although some individual states (e.g., Slovakia) are concerned about potential shortages and are even contesting certain steps, the overall European direction remains unchanged—aimed at a long-term restructuring of the energy market.
Restructuring Energy Trade and New Alliances
Geopolitical shifts have led to a reconfiguration of global supply chains for oil, gas, and other energy carriers. New partnerships are forming between countries. Some examples of these changes include:
- Canada – India: The two countries are expanding trade in oil and gas. Canada will ramp up crude oil and LNG exports to India, while India will increase reverse supplies of refined products to Canada.
- Russia – China: Russia plans to increase exports of oil, natural gas, coal, and electricity to China to compensate for the loss of the European market.
- Europe and New Partners: The EU is diversifying its energy imports. The EU is increasing gas imports from Norway and Algeria, as well as LNG procurement from the US and Qatar to replace Russian fuel.
Notably, many of the new agreements include collaboration not only in traditional energy resources but also in advanced technologies—such as hydrogen energy, biofuels, energy storage systems, and more. This indicates the market participants' commitment to looking towards the future and laying the groundwork for sustainable energy development.
Renewable Energy and the Global Energy Transition
Despite the turbulence in fossil fuel markets, the world continues its course towards the development of renewable energy sources. At the January IRENA assembly in Abu Dhabi, global leaders reaffirmed their commitment to accelerating the energy transition. Even traditional oil and gas countries are announcing significant investments in solar and wind energy. Europe, under the REPowerEU plan, is also ramping up renewable energy capacities to replace gas and achieve climate goals.
Leading energy corporations are adapting to this new trend. Major oil companies are directing a portion of their excess profits from oil and gas into green projects—from wind farms to hydrogen production. Fuel giants are declaring carbon neutrality goals by 2050 and expanding their presence in renewables, bioenergy, and energy storage systems.
However, the energy transition faces challenges. In some countries, changing political landscapes (such as in the US) are temporarily complicating support for clean energy, yet interest from businesses and regions in renewables remains strong.
