Current News in the Oil, Gas, and Energy Sector for Saturday, 6 December 2025: Price Dynamics for Oil and Gas, Inventories, Sanctions, Renewables, Coal, Export, Production, Investor and Energy Company Analysis.
Current events in the fuel and energy complex (FEC) as of 6 December 2025 illustrate a multifaceted dynamic in global markets amid ongoing geopolitical tensions. Global oil prices remain near multi-month lows, with Brent crude holding steady at around $62–63 per barrel, while West Texas Intermediate (WTI) hovers around $59. These levels are significantly lower than the mid-year figures, attributed to a range of factors, from expectations of progress in peace talks to indications of oversupply in the market. In contrast, the European gas market is entering winter with confidence: underground gas storage (UGS) facilities in EU countries are over 85% full, providing a robust buffer, while wholesale prices (TTF index) remain below €30 per MWh, substantially lower than peak levels of previous years.
Meanwhile, the geopolitical standoff surrounding energy shows no signs of abating. The collective West continues to increase sanctions pressure on the Russian energy sector—recently, the European Union legally approved a phased ban on imports of Russian pipeline gas by 2027 and an accelerated reduction of remaining oil supplies from Russia. Attempts at diplomatic resolution of the conflict have yet to yield tangible results, thus maintaining restrictions and supply disruption risks. Within Russia, authorities are extending emergency measures to stabilise the domestic fuel market following an autumn shortage of petrol and diesel, imposing strict export limitations on petroleum products. Concurrently, the global energy sector is accelerating its “green” transition: investments in renewables are reaching new records, with new incentives being introduced, even as traditional resources—oil, gas, and coal—continue to play a key role in the energy balance of most countries. Below is a detailed overview of the key news and trends in the oil, gas, electricity, and commodity sectors for this date.
Oil Market: Prices at Lows Under Pressure from Oversupply and Hopes for Peace
As December begins, global oil prices are under pressure and fluctuating at local lows. The North Sea Brent blend has dropped to approximately $62 per barrel after relative stability in the autumn, while WTI futures have dipped to $59. Current prices are about 15% lower than year-ago levels. The market is partially pricing in a scenario of eased sanctions on Russian oil should peace talks between Moscow and Washington succeed, thus lowering the geopolitical premium in prices. At the same time, concerns about oversupply are escalating: industry data shows an increase in global crude oil and fuel inventories, while seasonal demand declines at the year's end and the slowdown of the Chinese economy are restricting consumption. The oil alliance OPEC+ confirmed at its meeting on 30 November that it would maintain current production quotas at least until the end of 2026, signalling its reluctance to increase supply and risk a price collapse. As a result, the overall influence of these factors has shifted the market balance towards oversupply. Prices remain low as market participants assess the prospects of a potential peace agreement and future OPEC+ actions in response to changing conditions.
An additional sign of oversupply was Saudi Arabia's decision to lower the official selling price of Arab Light crude to Asian customers to the lowest level in the last five years. This move aims to strengthen the Saudis' competitive position in the Asian market; however, the simultaneous maintenance of limited OPEC+ production somewhat mitigates the oversupply pressure, keeping prices from declining further.
Gas Market: Europe Enters Winter with Comfortable Supplies and Stable Prices
The European natural gas market is heading into the peak heating season without significant upheavals. Thanks to timely fuel injection and a mild start to winter, EU countries are facing December with record-high gas storage levels and relatively low prices, reducing the risk of a repeat crisis like that of 2022. The main factors influencing the current situation in the European gas market include:
- High UGS Levels: According to industry monitors, the average filling level of gas storage in the EU exceeds 85%, significantly ahead of usual figures for the start of winter. The accumulated reserves create a reliable safety cushion in case of prolonged cold weather or supply disruptions.
- Record LNG Imports: European consumers continue to actively purchase liquefied natural gas on the global market. Easing demand for LNG in Asia has released additional volumes for Europe, partially compensating for the cessation of pipeline supplies from Russia. As a result, LNG inflow remains high, helping to keep prices at moderate levels.
- Moderate Demand and Diversification: Mild weather at the start of winter and energy conservation measures are restraining gas consumption. At the same time, the EU is diversifying supply sources: imports from Norway, North Africa, and other regions are increasing, strengthening energy security and reducing dependence on Russian resources.
- Price Stabilisation: Wholesale gas prices are now several times lower than the extreme peaks of last year. The Dutch TTF index is holding around €28–30 per MWh. High storage levels and market balancing have prevented new price spikes even amid a sharp reduction in gas imports from Russia.
Thus, Europe is entering winter with a significant buffer in the gas market. Even in the event of colder temperatures, accumulated reserves and flexible LNG supply chains can mitigate potential shocks. However, in the long-term, the situation will depend on weather conditions and global demand dynamics—especially if Asia's energy needs start to rise again amid economic recovery.
Russian Market: Fuel Shortages and Extended Export Restrictions
In autumn 2025, Russia faced an acute problem with a shortage of motor fuels (petrol and diesel) on the domestic market due to the interplay of several factors. An increase in seasonal demand (the harvest season raised fuel consumption) coincided with a reduction in supply from refineries (several plants curtailed production due to unscheduled repairs and drone attacks on fuel infrastructure). In several regions, petrol supply disruptions occurred, forcing the government to intervene rapidly to stabilise the situation. Authorities have implemented emergency measures that remain in effect:
- Ban on Petrol Exports: The RF government imposed a temporary ban on the export of petrol by all manufacturers and traders (except for supplies under intergovernmental agreements) at the end of August. Initially slated to last until October, the ban has been extended at least until 31 December 2025 due to ongoing tensions in the domestic fuel market.
- Restriction on Diesel Exports: Simultaneously, the export of diesel fuel has been banned for independent traders until the end of the year. Oil companies with their own refineries are allowed limited diesel fuel exports to avoid halting processing. This partial ban aims to ensure sufficient supplies of petroleum products within the country and prevent a recurrence of shortages.
According to officials, the fuel crisis that emerged in autumn has a local and temporary character. Reserves have been utilized to overcome the crisis, and refining operations are gradually recovering from unscheduled downtimes. By the beginning of winter, the situation has stabilised somewhat: wholesale prices for petrol and diesel have retreated from the peaks of September (including a further 5–7% decrease in petrol market quotes during early December compared to the previous week). Although fuel prices on the domestic market remain higher than a year ago, the government's priority is to fully meet the country's needs and prevent a new price surge. Should the situation require, strict export restrictions may be extended into 2026 to uphold stability.
Sanctions and Policy: Intensifying Western Pressure Amid Dialogue Attempts
Western countries continue to tighten their policy towards the Russian FEC, showing no readiness to ease sanctions. On 4 December, EU leaders formally approved a plan for a total and indefinite rejection of imports of Russian pipeline gas by the end of 2026 (with a cessation of purchases of Russian LNG by 2027) as part of a new sanctions package. This step is intended to deprive Moscow of a significant portion of export revenue in the mid-term. Opposition to this initiative has come from countries dependent on Russian gas, such as Hungary and Slovakia, but their objections were unable to block the EU's overall decision.
Simultaneously, the United States is ramping up its own pressures. The administration of President Donald Trump is taking a hard stance against countries collaborating with Russia in the energy field. In particular, Washington introduced increased tariffs of 25% on a range of Indian goods in 2025, partially in response to New Delhi's purchases of Russian oil, while also signalling a review of the easing of sanctions against Venezuela. These moves amplify uncertainty surrounding future Venezuelan oil supplies to the global market.
Meanwhile, direct negotiations between Moscow and Washington regarding the cessation of conflict have brought no significant progress—consultations in Moscow involving American emissaries ended without breakthroughs. Fighting in Ukraine continues, and all previously imposed restrictions on the export of Russian energy resources remain in place. Western energy companies continue to avoid new investments in Russia. Consequently, geopolitical tensions surrounding energy persist, adding long-term risks and uncertainties to the market.
Asia: India and China Strengthening Energy Security
The largest emerging economies in Asia—India and China—continue to focus on securing their energy security, balancing the benefits of cheap imports with external pressures. Countries in the region are actively seizing opportunities to purchase energy resources on favourable terms while simultaneously developing domestic projects and international cooperation. The current situation in these two key countries is as follows:
- India: New Delhi temporarily curtailed its purchases of Russian oil in late autumn due to Western pressure; however, India remains one of Moscow's chief customers. Indian refineries continue to process discounted Urals crude oil, meeting domestic fuel needs and directing any surplus petroleum products for export. President Vladimir Putin's state visit to India on 4–5 December highlighted the close ties between the two nations. During the summit on 5 December in New Delhi, both sides discussed and highly praised broad-scale cooperation in the energy sector, signing an "important package" of documents aimed at further deepening partnerships. The joint statement reaffirmed Russia's commitment to ensure uninterrupted fuel supplies for India's rapidly growing economy, as well as to expand collaboration in the realms of oil, gas, petrochemicals, coal generation, and nuclear energy. Furthermore, Russia aims to increase imports of Indian goods to balance trade, despite US sanction pressures (including high tariffs on Indian exports due to cooperation with Russia in the oil sector).
- China: Despite an economic slowdown, Beijing retains a key position in the global energy market. Chinese companies are diversifying their import channels: new long-term contracts for liquefied natural gas procurement are being established (including with Qatar and the US), pipeline gas supplies from Central Asia are being expanded, and investments in overseas oil and gas production are being increased. Simultaneously, China is gradually increasing its own hydrocarbon production, although this is still insufficient to fully cover domestic demand. The country is also continuing substantial coal purchases, aiming to secure its energy system during the transition period. Both India and China are actively investing in renewable energy development; however, they intend to retain traditional sources—oil, gas, and coal—as the foundation of their energy balance for the foreseeable future.
Renewable Energy: Record Investments Supported by Governments
The global transition to clean energy is continuing to accelerate, setting new records for investments and capacity additions. According to the International Energy Agency (IEA), global investments in renewable energy surpassed $2 trillion in 2025—more than double the combined investments in the oil and gas sector during the same period. The primary flow of capital is directed toward the construction of solar and wind power plants, as well as supporting infrastructure such as high-voltage grids and energy storage systems. At the COP30 climate summit, world leaders reaffirmed their commitment to accelerating greenhouse gas emissions reductions and substantially increasing renewable capacity by 2030. To achieve these goals, a comprehensive set of initiatives has been proposed:
- Accelerating Permitting Processes: To reduce the timeframes for consideration and simplify the issuance of permits for the construction of renewable energy facilities, modernization of grids, and implementation of other low-carbon projects.
- Expanding Government Support: To introduce additional incentives for “green” energy—special tariffs, tax breaks, subsidies, and government guarantees to attract more investments and reduce business risks.
- Funding Transition in Developing Countries: To increase international financial assistance for emerging market economies to accelerate the deployment of renewable energy where domestic resources are insufficient. Targeted funds are being created to make “green” projects more affordable in the most vulnerable regions.
The vigorous growth of renewable energy is already leading to noticeable changes in the global energy balance. According to analytical centres, non-carbon sources (renewables combined with nuclear generation) now account for over 40% of electricity production worldwide, and this share is steadily rising. Experts note that while short-term fluctuations may occur due to weather factors or spikes in consumption, the long-term trend is clear: clean energy is gradually displacing fossil fuels, bringing the arrival of a new low-carbon era closer.
Coal: Strong Demand Supports the Market, But the Peak Has Passed
Despite efforts to decarbonise, the global coal market in 2025 remains close to record levels. Global coal consumption is being maintained at historically high levels—around 8.8–8.9 billion tonnes per year, only slightly exceeding last year's figures. Demand continues to grow in developing Asian economies (primarily India and Southeast Asian countries), compensating for reductions in coal usage in Europe and North America. According to the IEA, in the first half of 2025, global coal consumption even slightly declined due to increased electricity generation from renewables and mild weather; however, a slight increase of around 1% is expected by the year's end. Thus, 2025 will mark the third consecutive year with coal burning levels near record heights.
Coal production is also increasing—particularly in China and India, which are ramping up domestic output to reduce import dependency. Prices for thermal coal remain generally stable, as strong demand in Asia maintains market balance. Nonetheless, analysts believe that global demand for coal has reached a plateau and will transition to gradual decline in the coming years as the development of renewable energy accelerates and climate policies tighten.
