Current News from the Oil, Gas, and Energy Sector as of 8 December 2025: Market Situation, Sanctions, Energy Security, Coal, Renewables, Russian Fuel Market, and Key Trends in the Fuel and Energy Complex
The key developments within the fuel and energy complex as of 8 December 2025 unfold amid a sustained harsh confrontation between Russia and the West, alongside relative stability in raw material markets as winter approaches. Recently, Western nations have intensified sanction pressures by introducing new restrictions against the Russian energy sector and closing loopholes to circumvent the embargo.
Concurrently, global raw material markets exhibit relative stability. Oil prices hover near recent lows, with Brent stabilising in the range of $60–65 per barrel after a brief dip below $60, supported by an abundance of supply. The European gas market enters winter with very high reserves—EU underground gas storage is over 90% full, which keeps wholesale prices at a comfortable level (TTF around €30 per MWh).
Against this backdrop, the global energy transition is gaining momentum. Investments in renewable energy are breaking records and now exceed investments in fossil fuel extraction. The share of green sources in global electricity generation continues to rise steadily. Nevertheless, oil, gas, and coal still remain the backbone of the energy balance, meeting current demand and ensuring the security of energy systems during this transition period.
In Russia, the domestic fuel market has notably stabilised by early December, thanks to urgent government measures taken last autumn. The severe shortage of petrol and diesel that emerged at the end of summer has largely been addressed: wholesale prices have retreated from their peak values, independent petrol stations have resumed normal operations, and regional supplies have returned to normal levels. Authorities continue to enforce restrictions on the export of petroleum products and support measures for oil refining to prevent a resurgence of price spikes and shortages during the winter period.
Below is an overview of key news and trends in the oil, gas, electricity, renewable, and coal sectors, as well as the Russian fuel market as of now.
Oil Market: Oversupply and Weak Demand Pressure Prices
Global oil prices remain subdued under the influence of oversupply and moderate demand. Benchmark Brent is trading around $64–65 per barrel, while WTI hovers around $60–61, approximately 10% lower than a year ago. Several factors are influencing this situation:
- OPEC+ Production Increases. The OPEC+ alliance is steadily increasing supply. In December, production quotas were raised by an additional 100,000 barrels per day, bringing the total increase since April to approximately 2.7 million barrels per day. This has led to a rise in global oil and product inventories.
- Weak Demand Growth. Global oil consumption is growing significantly slower than in previous years. The IEA forecasts an increase in demand in 2025 of only around +0.7 million barrels per day (compared to over +2 million in 2023). This is influenced by a slowdown in the global economy, the legacy effect of high prices from previous years (energy conservation), and structural shifts such as the accelerated adoption of electric vehicles. Weak industrial growth in China also limits the appetite of the world’s second-largest oil consumer.
Gas Market: High Storage Levels in Europe and Price Stability
The gas market is entering winter in a favourable state. EU underground gas storage is over 90% full, providing a strong buffer and keeping prices low. TTF hub prices have stabilised around €30 per MWh, significantly lower than last winter's peaks and indicating a balance of supply and demand in Europe.
- Europe is Prepared for Winter. Record gas reserves ensure a buffer even in severe cold spells. Sluggish economic growth and high renewable energy generation are curbing gas consumption in the EU, meaning that even during colder weather, much of the extra demand may be covered from storage—risk of shortages is minimal.
- Diversification of LNG Imports. Record deliveries of liquefied natural gas from the US, Qatar, Africa, and other regions have aided in filling European storage. During the summer, the EU capitalised on low spot prices and weak Asian demand to purchase maximum LNG and prepare for winter.
Thanks to accumulated reserves and diversified imports, Europe enters the heating season without signs of fuel shortages, and prices remain comfortable for consumers. Despite a decline in domestic production and a near-total cessation of Russian pipeline gas supplies, joint purchases, energy conservation efforts, and the accelerated roll-out of renewables bolster Europe's energy security.
International Politics: Sanction Standoff without De-escalation
- New Western Restrictions. In recent months, a series of additional sanctions have been imposed on the Russian fuel and energy complex. The United States has blacklisted leading Russian oil and gas companies, while the EU has approved a new package aimed at closing remaining embargo circumvention channels. The UK has added several foreign companies assisting with Russian oil trade to its sanctions list.
- Pressure on India and China. Under Western pressure, the largest Asian clients of Moscow have been urged to limit cooperation. India has expressed willingness to gradually reduce purchases of Russian oil (a slight decrease is expected starting in December), while China has also received signals to curtail imports. Currently, neither Delhi nor Beijing are rushing to take concrete steps, emphasising that their policies depend on national interests. Nevertheless, the prospect of reduced Asian demand heightens uncertainty, leading Russia to redirect supplies to alternative markets.
Asia: India and China Strengthening Energy Security
Asian giants remain key drivers of global energy consumption growth. Despite external pressures, China and India prioritise energy availability and reliability, increasing imports of oil, gas, and coal on favourable terms.
- China and India. China is receiving record volumes of Russian gas and remains one of the principal buyers of discounted Russian oil and coal. India has also boosted its imports of Russian oil to meet its energy needs. Both nations are in no rush to reduce cooperation with Moscow, placing energy security above external pressures.
Overall, high demand from Asian countries compensates for stagnating consumption in the West, sustaining global usage of oil, gas, and coal at elevated levels. The drive for energy security compels Asian economies to diversify sources and establish long-term contracts. Although China and India are gradually investing in clean energy, it is their purchases of traditional resources that currently significantly influence the dynamics of the global energy market.
Electricity and Renewables: Record Demand and New Challenges
Global electricity consumption in 2025 reaches a historical high, surpassing 30,000 TWh for the first time. Renewables now account for about 30% of this electricity. The main contributions to demand growth come from developing Asian countries (primarily China and India) as well as the proliferation of electric transport and electric heating.
- Infrastructure Upgrades. Worldwide, the modernization of electricity grids and generation capacities is accelerating. Significant investments are being made in smart grids, energy storage, and strengthening transmission lines. These efforts enhance the reliability of electricity supply and prepare grids for the growing share of renewable generation.
Coal Sector: High Demand in Asia and Accelerated Phase-Out in the West
The global coal market in 2025 remains close to record consumption levels, although dynamics vary by region. High demand persists in Asia, allowing global coal usage to remain at peak levels, while in the West, the use of this fuel is rapidly declining.
- East vs. West. In Asia (China, India), demand for coal remains high: these countries are increasing production and imports to support energy and industry. Major exporters (Australia, Indonesia, South Africa, Russia) maintain high supply volumes to the East. Conversely, in the West, coal is being rapidly phased out: strict environmental regulations have reduced its share to minimums (only a few percentage points of generation in the EU, with US consumption reverting to 1970s levels). Until Asian economies make substantial reductions in their dependence on coal, global coal consumption will remain close to record highs.
Russian Fuel Market: Stabilisation Post-Crisis and Priority for the Domestic Market
By autumn 2025, the internal market for petroleum products in Russia has gradually stabilised after the acute supply crisis that occurred at the end of summer. Thanks to urgent government measures, the situation concerning petrol and diesel has been brought under control: shortages in most regions have been eliminated, and price increases have halted.
- Export Restrictions and Stabilisation. The ban on the export of automotive petrol, enacted at the end of September, has been extended until 31 December 2025; restrictions on diesel fuel exports remain in place (independent traders are not exporting, while oil companies are allowed only limited exports). These measures alongside subsidies for oil refiners have been effective: wholesale prices have withdrawn from their peaks, and independent petrol stations have resumed normal operations without supply disruptions even in remote regions.
The government intends to maintain control over the fuel market at least until the end of winter while concurrently working on long-term solutions to enhance the sector's resilience.
