Global News of the Oil, Gas, and Energy Sector for Tuesday, 27 January 2026: Oil, Gas, Electricity, Renewable Energy, Coal, Oil Products, and Key Trends in the Global Energy Sector for Investors and Market Participants
Current developments in the fuel and energy complex as of 27 January 2026 are capturing the attention of investors, market participants, and major energy companies due to their ambiguity. After multi-year lows at the end of last year, oil prices are demonstrating a recovery – Brent prices have climbed back to the mid-$60s per barrel, driven by supply disruptions and geopolitical risks. Meanwhile, gas markets are seeing a divide: Europe still enjoys comfortable supplies and moderate prices, while North America is experiencing a price surge due to LNG exports and a harsh winter. Sanction pressures on the Russian energy sector remain high, as the West introduces further restrictions; however, there have been the first hints of a possible compromise on the diplomatic horizon, contingent upon crisis resolution. In Asia, the largest consumers of oil and gas – India and China – continue to balance favourable energy imports (including discounted supplies from Russia) with the development of domestic production. Simultaneously, the global energy transition is gaining momentum: renewable energy is setting records in generation and investments, although traditional resources remain essential for energy system reliability, especially during periods of weather anomalies. Despite the environmental agenda, coal demand remains around historical highs, underscoring the short-term dependence of many economies on this fuel type. In the meantime, on the domestic market in Russia, government measures to curb gasoline and diesel prices have yielded results: by early 2026, the situation has stabilised, and authorities are prepared to extend regulation if necessary to avoid a new cycle of fuel crisis. Below is a detailed overview of the key news and trends within the oil, gas, electricity, and raw materials sectors for the current date.
Oil Market: Disruptions and Geopolitics Sustain Prices
Global oil prices continue their gradual ascent following last year's decline. The North Sea Brent is trading around $65 per barrel, while American WTI hovers around $60, approximately 10% above recent lows. Despite persistent signs of oversupply, emerging support factors are shifting the market towards an upward trajectory. Firstly, oil production in certain regions has temporarily decreased: a winter storm in the USA has led to approximately 250,000 barrels per day being shut down, disrupting several wells in Texas and Oklahoma. Additionally, Kazakhstan's largest field, Tengiz, is only partially resuming operations after an accident, while the Caspian Consortium (CPC) pipeline was recently undergoing repairs, limiting supply in the market. Secondly, there has been an escalation in geopolitical tensions: heightened US-Iran relations keep traders on edge. Washington's announcements regarding the deployment of an aircraft carrier group to the Gulf region and mutual threats raise risks concerning the stability of oil supplies from the Middle East. Against this backdrop, hedge funds and other investors have begun increasing long positions in oil, anticipating potential shortages if the conflict escalates. At the same time, fundamental factors continue to stymie more significant price growth. Economic growth in China has slowed, and rising interest rates in the West are cooling demand – oil consumption is not growing as rapidly as before. OPEC+ is maintaining a cautious stance: according to insiders, the alliance will refrain from increasing production at the next meeting, aiming to keep the market balanced. Thus, oil is trading significantly above recent lows at the end of January; however, the further price trajectory will depend on the development of geopolitical events and the recovery of global demand.
Gas Market: European Stability and Price Surge in the US
The gas market is exhibiting diverging trends across various regions:
- Europe: EU member states are entering the middle of winter with still relatively high gas reserves. EU underground storage facilities were filled to approximately 45-50% of total capacity by the end of January (though this is lower than last year when it was over 55%). Thanks to active imports of liquefied natural gas and previously accumulated reserves, European prices remain relatively moderate. TTF hub prices, which dropped below €30 per MWh (~$320 per thousand cubic meters) in December, now fluctuate around €40 amid recent cold spells – this level is several times lower than the peaks of 2022. This pricing environment is favourable for European industry and power generation, allowing for a winter period without extreme fuel costs.
- USA: in contrast, the American gas market is experiencing a significant price surge. Wholesale prices at the Henry Hub have risen above $5 per million BTU (approximately $180 per thousand cubic meters), over 50% higher than a year ago. This sharp increase is attributed to record LNG exports and abnormal cold weather. The USA is actively sending liquefied gas to Europe and Asia in winter, reducing domestic supply and leading to increased costs for gas used in power generation and by consumers. The situation has been exacerbated by severe cold in January: elevated heating demand coincided with production disruptions caused by icy infrastructure. Consequently, some American energy companies have had to increase generation at coal-fired power plants to compensate for the shortfall and curb costs – temporarily raising coal's share in US generation despite environmental concerns.
- Asia: on key Asian markets, gas prices remain relatively stable. Importers in the region – such as Japan, South Korea, and China – are covered by long-term LNG contracts, and a relatively mild start to winter has not led to panic buying. Moderate economic growth in China and India is limiting gas consumption growth, so competition with Europe for spot LNG cargoes hasn't intensified yet. However, analysts warn that sudden cold weather or accelerated industrial growth in Asia could change the situation. If China or other large consumers sharply increase their purchases, global gas prices may rise again, and the competition between East and West for additional LNG volumes could intensify.
Thus, the global gas market presents a mixed picture. Europe currently enjoys relatively low prices and reliable supplies, while North America faces expensive gas creating local challenges for energy provision. Meanwhile, the Asian market is balanced under current demand but remains sensitive to weather conditions and economic dynamics. Industry participants are closely monitoring developments: weather patterns and economic growth in the coming months could significantly impact the global gas supply-demand balance.
International Politics: Sanction Pressures and Cautious Signals for Dialogue
In the geopolitical sphere, tensions surrounding Russia's energy resources persist. At the end of 2025, the European Union approved its 19th package of sanctions, further tightening restrictive measures. Specifically, the last channel for circumventing oil sanctions was closed – a ban was imposed on any financial and transport services related to the export of Russian oil, effectively excluding Russian raw materials from EU markets. At the beginning of 2026, the introduction of the 20th EU sanctions package is expected; forecasts suggest it will cover new sectors (including the nuclear sector, metallurgy, oil refining, and fertiliser exports). Concurrently, the USA has intensified its own pressure: significant Russian oil companies such as Rosneft and Lukoil were added to the list of US restrictions at the end of the year, along with the introduction of additional 25% tariffs on certain Indian goods – Washington openly linked this measure with India's continued import of Russian oil. As a result, the cumulative sanctions regime remains extremely strict, and energy resources from Russia continue to be sold only to a limited number of countries at substantial discounts (the Urals grade is trading at around $10 discount to Brent, close to a record level in recent years).
Simultaneously, the diplomatic horizon has shown the first hints of potential easing of confrontation in the future. According to sources, in recent weeks, representatives of the USA have communicated informal proposals to European allies on what a gradual return of Russia to the global economy might look like – of course contingent on achieving peace and resolving the Ukrainian crisis. No real easing of sanctions has yet been implemented; however, the mere fact of such discussions indicates a search for pathways to dialogue in the long term. Furthermore, Washington is providing selective signals of willingness to compromise with its partners: for instance, the US Treasury recently indicated it could consider lifting additional tariffs on India after New Delhi significantly reduced its purchases of Russian oil. Although these steps are limited, markets positively perceive any signs of reduced sanction tensions. For the time being, however, the strict sanctions regime persists, and new restrictions for the Russian energy sector remain possible in the absence of progress in talks. Investors are paying close attention to the situation: substantial peace initiatives could enhance market sentiment and soften sanction rhetoric, while a lack of movement poses further barriers for the Russian oil and gas sector.
Asia: India and China Balancing Between Importing and Domestic Production
- India: faced with Western sanctions, New Delhi makes it clear that it cannot sharply reduce imports of Russian oil and gas, as they are critical for national energy security. Indian refiners have secured favourable terms: Russian suppliers are offering Urals oil at significant discounts (the current discount is around $10 to Brent prices) to maintain their market share in India. Consequently, India continues to purchase substantial volumes of Russian oil at discounted prices. However, at the end of 2025, under pressure from sanction risks, Indian imports of Russian crude fell somewhat – trader data indicates that December shipments dropped to their lowest levels in two years. The USA previously imposed additional tariffs on Indian exports due to the Russian oil issue, and following the reduction in purchases, Washington is signalling readiness to lift these 25% tariffs. Simultaneously, India is ramping up efforts to reduce its future import dependency. In August 2025, Prime Minister Narendra Modi announced a national programme for exploring deep-water oil and gas reserves. Under this initiative, the state company ONGC has begun drilling ultra-deep wells (up to 5 km) in the Andaman Sea, and initial results appear promising. This "deep-water mission" aims to unlock new hydrocarbon reserves and bring India closer to the goal of energy independence in the long run.
- China: the largest economy in Asia is also increasing energy resource purchases while boosting domestic production. Chinese importers remain the leading buyers of Russian oil (Beijing has not joined the sanctions and is seizing the opportunity to buy raw materials at discounted prices). In 2025, China's total oil imports reached record levels – official data shows that the country imported around 557.7 million tonnes of crude oil (≈11.5 million barrels per day), about 4.4% more than the previous year. The end of the year was particularly active: December imports surpassed 13 million b/d, setting a historical high, partly due to strategic reserve purchases amid low prices. Concurrently, Beijing is investing significant resources in developing its national oil and gas production. In 2025, oil production in China increased by approximately 1.7%, while gas output grew by more than 6%. Increasing domestic production helps partially meet the economy’s needs, but does not eliminate the dependency on imports. Given the colossal demand, China's reliance on external supplies remains high: around 70% of consumed oil and about 40% of gas are still required to be imported. Beijing aims to diversify sources – from expanding imports from the Middle East and Russia to enhancing green generation within the country – but in the coming years, China will retain its status as the world's largest importer of energy resources.
Thus, the two largest Asian consumers – India and China – continue to play a key role in global commodity markets, combining strategies for securing imports with the development of their resource base. Their actions significantly impact the balance of supply and demand for oil and gas: global prices and the success of Western sanction initiatives largely depend on these countries' purchasing volumes.
Energy Transition: Records in Renewable Energy and the Role of Traditional Generation
The global transition to clean energy significantly accelerated in 2025, setting new records. Many countries are witnessing unprecedented growth in electricity generation from renewable sources (RES). In Europe, by the end of 2024, total generation from solar and wind power plants surpassed electricity production from coal and gas-fired power stations for the first time. This trend has been sustained into 2025: thanks to the commissioning of new capacities, the share of "green" electricity in the EU is steadily increasing, while coal use in the energy mix is again declining (following a temporary increase during the gas crisis of 2022-2023). In the USA, renewable energy also reached historical levels – more than 30% of total generation is now from RES, with combined electricity generated from wind and solar in 2025 surpassing output from coal plants for the first time. China, the global leader in installed RES capacity, annually adds tens of gigawatts of new solar panels and wind turbines, continuously setting new production records.
Companies and investors worldwide are directing colossal funds towards the development of clean energy. According to IEA estimates, total investment in the global energy sector exceeded $3 trillion in 2025, with more than half of this funding allocated to RES projects, grid modernization, and energy storage systems. In line with this trend, the European Union has adopted a new ambitious target to reduce greenhouse gas emissions by 90% from 1990 levels by 2040, necessitating a swift transition away from fossil fuels in favour of low-carbon technologies.
However, energy systems still rely on traditional generation for stability. The growing share of solar and wind energy presents challenges for grid balancing during hours when RES generation is unavailable (for example, at night or during calm periods). To cover peak demand and prevent disruptions, operators sometimes have to resort again to coal and gas-fired power plants as backup capacities. For instance, last winter, some European countries had to temporarily increase generation at coal-fired power stations during windless cold spells – despite environmental costs. Similarly, in the autumn of 2025, expensive gas in the USA compelled utilities to briefly increase coal use to reduce electricity costs. To enhance the reliability of energy supply, governments in many countries are investing in the expansion of energy storage systems (industrial batteries, pumped hydro storage) and building "smart" grids capable of flexibly managing loads. Experts predict that by 2026-2027, renewable sources will take the lead globally in electricity generation, finally surpassing coal. However, in the next few years, the need to maintain some traditional power plants on standby as a safeguard against unforeseen disruptions will persist. In other words, while the global energy transition is reaching new heights, it requires a careful balance between "green" technologies and proven resources to ensure the uninterrupted operation of the electricity sector.
Coal: A Stable Market Amidst High Demand
The accelerated development of renewable energy has not negated the key role of the coal industry. The global coal market remains one of the largest segments of the energy balance, and global demand for coal remains consistently high. The need for this fuel is particularly pronounced in the Asia-Pacific region, where economic growth and energy needs support intensive coal consumption. China, the world's largest consumer and producer of coal, burned it at nearly record rates in 2025. Chinese mines produce over 4 billion tonnes of coal annually, covering most domestic demand; however, even these volumes are barely sufficient during peak load periods (for example, during summer heatwaves when air conditioning usage is widespread). India, with substantial coal reserves, is also increasing its coal consumption: over 70% of electricity in the country is still generated from coal-fired power plants, and absolute consumption of this resource is rising alongside economic growth. In other developing countries in Asia – such as Indonesia, Vietnam, Bangladesh, and others – new coal-fired power plants continue to be built to meet the growing needs of the population and industry.
The supply in the global market has adapted to this stable demand. The largest coal exporters – Indonesia, Australia, Russia, and South Africa – have significantly increased their production and supply of thermal coal to the external market in recent years. This has helped keep prices at relatively stable levels. After price spikes in 2022, thermal coal prices have returned to their usual range and have fluctuated in recent months without sharp changes. The balance of supply and demand appears stable: consumers continue to receive the necessary fuel, and producers enjoy stable sales at favourable prices. Despite many governments announcing plans to gradually reduce coal usage for climate goals, in the short term, this resource remains essential for supplying energy to billions of people. Experts estimate that in the next 5-10 years, coal generation – especially in Asia – will maintain a significant role, despite global decarbonisation efforts. Thus, the coal sector is currently experiencing a period of relative equilibrium: demand remains high, prices moderate, and coal continues to serve as a cornerstone of global energy supply.
The Russian Oil Products Market: Measures to Stabilise Fuel Prices
In the domestic fuel sector of Russia, emergency measures were taken in the second half of 2025 to normalise the price situation. Back in August, wholesale exchange prices for gasoline and diesel in the country surged to new record highs, exceeding last year's levels. The reasons were a spike in summer demand (driven by active tourism and harvest campaign) and a reduction in fuel supply due to unscheduled repairs at refineries and logistics issues. The government was compelled to enhance market regulation, promptly implementing a set of measures to cool prices:
- Export Ban on Fuel: a complete ban on the export of petrol and diesel fuel was imposed in September and extended until the end of 2025. This measure covered all producers (including major oil companies) and aimed to redirect additional volumes of oil products to the domestic market to eliminate shortages.
- Distribution Control: authorities increased monitoring of fuel shipments within the country. Refineries received directives to prioritise the needs of the domestic market and prevent the practice of multiple resale on exchanges. Concurrently, work has begun on direct contracts between oil refiners and gas station networks, which would eliminate unnecessary intermediaries from the supply chain and prevent speculative price increases.
- Industry Subsidisation: incentive payments for fuel producers were maintained. The state compensates oil workers for part of the lost profit from selling gasoline and diesel domestically (the so-called "damper"), encouraging companies to supply sufficient volumes to the domestic market, even if exports would be more profitable.
The combination of these measures has already yielded a noticeable effect – the fuel crisis was largely stabilised by autumn. Although exchange prices for gasoline set records in 2025, retail prices at gas stations increased at a significantly slower pace. According to official data, the average price of gasoline in Russia rose by approximately 10% over the year, which only slightly exceeded the overall inflation rate. A fuel shortage at gas stations was avoided: the network of petrol stations is adequately supplied with necessary resources, and there are no queues or sales restrictions observed. The government, for its part, has stated its readiness to continue controlling the situation. If necessary, export restrictions will be extended in 2026 (consideration is being given to prolonging the ban on gasoline and diesel exports at least until the end of winter), and in the event of new price spikes, authorities promise to utilise state fuel reserves to saturate the market. Monitoring the state of the fuel market is conducted at the highest level – relevant ministries and the Deputy Prime Minister are overseeing the issue and assuring that all efforts will be made to maintain stable gasoline and diesel prices for Russian consumers within economically justified limits.
