Global News of the Oil, Gas and Energy Sector as of 22 December 2025: Oil, Gas, LNG, Renewable Energy, Coal, Oil Products and Key Trends in Global Energy Sector. Analysis for Investors and Market Participants.
The global fuel and energy complex is undergoing significant changes, closely monitored by investors and market participants. Oil prices have fallen to their lowest levels in four years amidst oversupply and geopolitical uncertainty. Europe enters winter with comfortable natural gas reserves (storage facilities are over 90% full) due to record LNG imports, which stabilise the market and gas prices. Simultaneously, the energy sector is rapidly transitioning to renewable sources: 2025 recorded a record growth in renewable energy generation, placing the coal industry before the prospect of declining demand. Below are key news items and trends in the fuel and energy sector as of 22 December 2025.
Oil Prices and OPEC+ Strategy
The oil market is witnessing a decline in prices: Brent crude is hovering around $60 per barrel, the lowest level since 2021. The primary reasons are fears of oversupply and seasonal weakening of demand at the beginning of the year. In response to the situation, the OPEC+ alliance agreed to a modest increase in production for December (+137,000 barrels per day) and decided to suspend any further production growth in the first quarter of 2026 to prevent overproduction. An additional factor of uncertainty has been the new Western sanctions against major Russian oil companies, complicating export growth from Russia.
- Supply Growth: From April 2025, OPEC+ has been gradually increasing production (a total of approximately 2.9 million barrels per day), which, coupled with stable demand, has led to excess oil volumes in the market.
- Seasonal Factor: The beginning of the year is traditionally characterized by lower consumption of oil and oil products, increasing price pressure during this period.
- Geopolitics and Sanctions: Sanction restrictions against several oil-producing countries remain in place, keeping part of the supply off the market and creating uncertainty.
In the context of heightened volatility, oil and fuel companies are eager to respond swiftly to changes in the market environment. Digital tools come to their assistance; for example, the "Open Oil Market" platform enables real-time tracking of oil and oil product prices, helping investors make quicker market decisions.
Natural Gas and LNG Market
The European gas market entered the winter season relatively resilient. Underground gas storage across the European Union is over 90% full, reducing risks of shortages even in case of severe cold. Active imports of liquefied natural gas (LNG) have compensated for the sharp decline in pipeline supplies from Russia. Gas prices in Europe have stabilised at levels significantly lower than the peaks of 2022, easing the cost burden for both industry and consumers.
- Record LNG Imports: In 2025, Europe imported approximately 284 billion cubic meters of LNG, setting a new record. The USA emerged as a key supplier (accounting for up to 60% of the volume), alongside Qatar and other exporters.
- Withdrawal from Russian Gas: The EU is formalising plans to completely halt imports of Russian gas by 2027. Beginning in early 2026, a ban on purchasing Russian LNG on the spot market will come into effect, forcing EU countries to reorient to other sources.
On a global scale, demand for gas remains stable due to Asian markets, although competition among suppliers is intensifying. Middle Eastern and North African countries are investing in LNG projects, aiming to capture a share of the growing market. Simultaneously, increasing gas exports from the USA and Australia are creating an oversupply, keeping prices within moderate bounds.
Renewable Energy: Record Growth
The year 2025 has been landmark for renewable energy. Unprecedented new capacities of solar and wind power plants were deployed worldwide. According to industry reports, the installation of solar and wind projects in the first half of 2025 surged by over 60% compared to the same period a year earlier. For the first time in history, electricity generation from renewable sources exceeded that from coal-fired power plants for a six-month period. This rapid development of green generation occurs against the backdrop of massive investments: approximately $2 trillion has been invested globally in clean energy in 2025. However, despite these record rates, further investments and upgrades to electrical grids are required to meet climate targets.
China's success stands out, as it has become a driving force in the energy transition. By installing hundreds of gigawatts of new solar and wind capacities, China managed, in 2025, to hold CO2 emissions steady even while increasing electricity consumption. China's experience demonstrates that large-scale investments in renewable energy can simultaneously satisfy the rising demand for electricity and reduce the carbon footprint.
Coal Sector: Peak Demand
Global coal demand reached a historic peak in 2025, although the growth rate has slowed to a minimum. According to the International Energy Agency (IEA), global coal consumption increased by only 0.5%, amounting to approximately 8.85 billion tonnes—a record volume, after which a prolonged plateau is expected, leading to a gradual decline by 2030. Coal remains the largest fuel for electricity generation worldwide, but its share is beginning to shrink due to competition from alternative energy sources.
Regional trends vary. In China, the largest consumer of coal (accounting for about half of global consumption), demand stabilised in 2025 with gradual declines expected by the end of the decade due to new renewable energy capacities coming online. In India, record hydroelectric power generation has resulted in a temporary reduction in coal usage for the first time in many years. In the USA, there has been a slight increase in coal combustion amid high gas prices and government support for extending the operation of coal-fired power plants. All these factors confirm that the peak of global coal demand is near, and future dynamics will depend on the pace of energy transition in the largest economies.
Oil Products and Refining: High Margins
The oil products market at the end of 2025 is witnessing high profitability for refiners. Global refining margin indicators ("crack spreads") have risen to multi-year highs. Causes include sanctions (which reduced the export of oil products from Russia), the shutdown and repair of several major refineries in Europe and the USA, as well as delays in bringing new refining capacities online in the Middle East and Africa. The European diesel segment remains particularly profitable: the refining margin for diesel in Europe has surged to levels not seen since 2023, indicating a structural deficit of this fuel.
In response, refineries are maximising throughput to take advantage of favourable conditions. Major oil companies have reported a sharp increase in profits in the downstream segment (refining and marketing) in recent quarters due to high prices of gasoline and diesel. According to the IEA, European refineries increased oil processing by several hundred thousand barrels per day in the second half of 2025 due to high margins. Analysts note that, without the introduction of new capacities in Europe and North America, fuel shortages may persist, maintaining high margin levels into 2026.
Geopolitics and Sanctions: Market Impact
Geopolitical factors continue to significantly influence commodity markets. Sanction regimes affecting the oil and gas sector remain in force, with their strict enforcement confirmed by recent events. In December, the USA intercepted an oil tanker off the coast of Venezuela, blocking an attempt to circumvent sanctions. Simultaneously, the USA has increased pressure on the "shadow fleet" transporting Iranian oil: despite new restrictions, exports from Iran reached their highest level in recent years in 2025 due to supplies to Asia. Russian oil and oil products exports have been redirected to alternative markets (China, India, Middle East), but price ceilings and EU sanctions continue to cut into the industry's revenues. The European Union is also tightening restrictive measures: in addition to the oil embargo, a ban on the import of Russian LNG will come into effect in early 2026—essentially marking the end of Europe's reliance on energy carriers from Russia.
In this context, market participants are factoring in heightened geopolitical risks and price premiums into their forecasts. Any signals of potential easing of sanctions or diplomatic progress could significantly influence investor sentiment. As it stands, oil and gas companies are adapting to the new structure of flows and prices—diversifying logistics and seeking opportunities in regions less susceptible to sanctions.
Investments and Projects: A Forward-Looking Perspective
Despite market volatility, substantial investments in energy continue globally. Middle Eastern countries are ramping up investments in oil and gas production: national companies are expanding production capacities to maintain market share in the long term. For instance, in the UAE, ADNOC has secured financing of approximately $11 billion for gas production enhancement projects. Concurrently, leading exporters (Qatar, USA) are implementing LNG terminal expansion projects, anticipating growth in global demand for blue fuel.
Significant funds are also being directed towards clean energy. Global investments in renewable sources continue to rise: corporations are investing in solar and wind farms, as well as energy storage infrastructure. Nevertheless, achieving decarbonisation goals will require even greater efforts and resources. New technologies—such as hydrogen energy and energy storage systems—are becoming increasingly attractive capital investment areas. The year 2026 is expected to witness new mergers and acquisitions in the industry, as well as the launch of major projects in both the traditional oil and gas sectors and the renewable energy sphere.
