Current News in Oil, Gas, and Energy for Friday, December 26, 2025: Global Oil and Gas Markets, OPEC+ Decisions, Renewables, Coal, Refineries, Electricity, and Key Trends in the Energy Sector for Investors and Market Participants.
Current events in the global fuel and energy sector on December 26, 2025, continue to capture the attention of investors and market participants with mixed signals. Intense diplomatic negotiations aimed at resolving the protracted conflict in Eastern Europe are ongoing, although no concrete results have emerged as yet. The United States and European partners have offered Kyiv unprecedented security guarantees in exchange for a ceasefire, instilling cautious optimism about a potential peace agreement. However, formal agreements have not been reached, and the strict sanctions regime against the Russian energy sector remains fully intact.
The global oil market remains under pressure from oversupply and weak demand. Benchmark Brent crude prices hover around $62 per barrel—close to the lowest levels since 2021—indicating a surplus of crude oil. The European gas market shows resilience; even at the peak of winter demand, underground gas storage in the EU is filled to roughly two-thirds capacity, effectively eliminating the risk of shortages. Stable liquefied natural gas (LNG) supplies and alternative pipeline fuels are keeping wholesale prices at moderate levels, significantly lower than the peaks of 2022, easing the burden on consumers.
Meanwhile, the global energy transition is gaining momentum. In many countries, new records for electricity generation from renewable sources are being set, although conventional coal and gas power plants still play an important role for system reliability. At the same time, interest in nuclear energy is reviving in several regions as a stable low-carbon source. World coal consumption is estimated to have reached a historic peak in 2025 and is on the brink of declining. Below is a detailed overview of the key news and trends in the oil, gas, electricity, and raw materials sectors as of this date.
OPEC+ Maintains Production to Stabilize the Market
- At its December meeting, OPEC+ members decided to keep current oil production quotas unchanged for the first quarter of 2026 to prevent a possible oversupply in the market.
- OPEC+ countries have already returned about 2.9 million barrels per day to the market from previously reduced volumes; however, the total reduction of approximately 3.2 million bpd remains in place and has been extended until the end of 2026.
- The meeting took place against the backdrop of renewed efforts by the United States to achieve a peace agreement between Russia and Ukraine. OPEC+ acknowledges that the success of the negotiations and the potential easing of sanctions could bring additional oil volumes to the market, while a failure would increase sanctions pressure and limit exports from Russia.
Oil Prices Remain Stable
Global oil prices are approaching the year's end without sharp fluctuations, maintaining an average range. Brent is around $62–63 per barrel, while WTI trades approximately at $58–59, reflecting a balance between stable demand and sufficient supply in the oil market.
- Earlier this week, oil prices rose about 2% in response to strong macroeconomic data from the U.S.: GDP growth in the third quarter exceeded forecasts, bolstering expectations of sustained energy demand.
- As the holiday season approaches, trading activity on exchanges has diminished, further limiting volatility and contributing to relative price stability as the year concludes.
Natural Gas: Comfortable Supplies and Moderate Prices
The natural gas market has entered winter relatively calmly. In Europe, even December's cold weather has not provoked panic: EU gas storages remain filled to over 65% of their total capacity, significantly higher than historical average levels for the end of the year. Such a level of reserves practically guarantees the absence of gas shortages this winter.
- Wholesale gas prices are maintaining moderate levels. Futures on the TTF hub are trading around €27 per MWh (approximately $320 per 1,000 cubic meters)—the lowest they have been in nearly 18 months, significantly below the price peaks of 2022.
- Active LNG imports continue to replenish European storages: by the end of 2025, total LNG imports into Europe are expected to approach record levels. High volumes of supply are restraining price increases even amid rising demand during the cold season.
- In the future, a potential risk factor for prices could be competition for LNG from Asia if economic growth in APEC countries accelerates and leads to increased Asian demand. However, at this moment, the balance in the gas market remains favorable for consumers.
Geopolitics and Sanctions: Impact on Energy Supplies
Political conflicts and sanctions continue to significantly affect global energy markets, creating both threats of supply disruptions and hopes for an improvement in the situation. In recent weeks, the market's attention has been focused on diplomatic efforts to resolve the crisis: negotiations involving the U.S., EU, Ukraine, and Russia (including meetings in Berlin and Anchorage) have shown the parties' willingness to find a compromise.
So far, no breakthrough has occurred, which means that strict sanctions on Russian oil and gas exports remain in place. Furthermore, Washington has previously signaled a willingness to tighten measures in the absence of progress: a possible 100% tariff on all Chinese exports to the U.S. was discussed if Beijing does not curtail its Russian oil purchases. Nonetheless, ongoing dialogue has allowed for a delay of the harshest measures, and markets hope for positive shifts in the coming weeks. Any rapprochement could improve investor sentiment and soften sanctions rhetoric, while a failure in negotiations threatens a new escalation of trade restrictions. Thus, the political factor remains a key uncertain driver for oil and gas supplies in 2026.
Renewable Energy: Wind Records and Investments
The renewable energy sector continues to grow vigorously across the globe, setting new records in capacity and attracting significant investments—even amidst ongoing geopolitical instability. The year 2025 marked a milestone for "green" energy, demonstrating its resilience and appeal for capital investment.
- The UK achieved a historic peak in wind power generation on December 5, producing 23,825 MW, accounting for over half of the country's consumed power at that moment. This record was made possible by strong winter winds and the expansion of offshore wind farms.
- According to BloombergNEF, global investments in new renewable energy projects reached a record $386 billion in the first half of 2025. The majority of these funds are directed towards the development of solar and wind generation, as well as energy storage systems necessary for integrating renewables into the energy grid.
- In the U.S., a federal court lifted a ban on the construction of new wind energy projects on federal lands and offshore, which had been imposed earlier this year. This court decision paves the way for the realization of large offshore wind farms and supports states' plans to increase the share of clean energy.
- China maintains its global leadership in renewables: the total installed capacity of renewable sources in the country exceeded 1.88 TW (about 56% of the total electricity generation capacity). The large-scale deployment of solar and wind installations, along with storage systems, has allowed China to keep CO2 emissions stable despite economic growth.
Nuclear Energy: A Return of Large Capacity
After a prolonged downturn in the global nuclear sector, a revival is underway. Various countries are reassessing the role of nuclear generation as a stable low-carbon energy source, striving to reduce dependence on fossil fuels and ensure the reliability of energy systems.
- Japan is preparing for the partial restart of the Kashiwazaki-Kariwa nuclear power plant, the largest in the world. The energy company TEPCO has received approval from authorities in Niigata Prefecture and plans to launch Unit 6, with a capacity of 1360 MW, on January 20, 2026—this will be the first reactor put into operation by the company since the 2011 accident. Full recovery of the 8.2-gigawatt station is planned to be conducted gradually over several years.
- The Japanese government has announced support measures for the nuclear sector with the aim of at least doubling the share of nuclear generation in the country's energy balance by 2030. A system of government loans and guarantees for reactor upgrades is being introduced; currently, 14 out of 33 reactors remaining after the Fukushima accident have resumed operation.
- A return to nuclear energy is also observed in other regions. In Europe, the Finnish reactor Olkiluoto-3 went into full operation in 2025, while France and the UK are investing in the construction of new nuclear power plants. In the U.S., the extension of the lifespan of operational units and funding for small modular reactor projects are being considered.
Coal Sector: Peak Consumption and Gradual Decline
The global coal market reached an historic peak in 2025, after which a trend reversal is forecasted. According to the International Energy Agency, global coal consumption increased by approximately 0.5% and reached about 8.85 billion tons this year. However, no further significant growth is expected; on the contrary, a gradual decline in coal demand is projected by the end of the decade as renewables, nuclear energy, and natural gas gradually displace coal from power generation.
- In the U.S., coal consumption for power generation increased in 2025. This was facilitated by last year's surge in gas prices and a temporary directive from the administration extending the operation of some coal-fired power plants previously slated for closure.
- China remains the largest coal consumer, accounting for about 60% of the county's electricity generation. In 2025, coal demand in China stabilized; a gradual decrease is expected by 2030 due to the large-scale introduction of renewable capacities. Beijing's policy aims to achieve peak emissions by 2030, which implies a reduction in the role of coal in the coming years.
Oil Products and Refining: High Margins at Year-End
By the end of 2025, the global oil products market is demonstrating high profitability for refineries. The decline in oil prices, coupled with stable demand for gasoline, diesel, and jet fuel, has resulted in an increase in refining margins across many regions. Refiners are benefiting from the relative cheapness of crude while still enjoying a healthy level of oil products consumption.
- Global indicative refining margins have risen to their highest levels in recent years. Notable growth in profitability has been observed in the diesel segment, where demand remains strong in transport and industry.
- The construction of new refineries in Asia and the Middle East (such as major complexes in China and the Gulf States) is increasing global refining capacities. However, the concurrent closure of older refineries in Europe and North America is sustaining relative balance in the oil products market, preventing oversaturation and maintaining margins.
- In Russia, authorities extended the ban on the export of gasoline and diesel fuel after the summer crisis to saturate the domestic market and reduce prices. These measures have stabilized the situation within Russia, but at the same time, they reduced the supply of diesel fuel in the global market, which also contributed to maintaining high margins in Europe and Asia.
Corporate News: Deals and Strategies of Energy Companies
The end of the year is marked by significant corporate developments in the energy sector, reflecting companies' efforts to optimize asset portfolios and adapt to new market conditions. Oil and energy corporations are reevaluating strategies, focusing on enhancing the effectiveness of traditional business while investing in the transition to cleaner energy.
- BP announced the sale of 65% of its subsidiary Castrol (a lubricant manufacturer) to the American investment fund Stonepeak for $6 billion. This deal values the entire Castrol business at $10.1 billion; BP will retain a 35% stake in the new joint venture. The proceeds are set to be directed towards reducing debt and paying dividends, aligning with the strategy to enhance returns in the traditional oil segment.
- Despite sanctions, foreign partners remain interested in Russian oil and gas projects. For instance, Indian ONGC and Japanese SODECO have retained their stakes in the Sakhalin-1 project, while a preliminary agreement between ExxonMobil and Rosneft regarding reimbursement for past losses signals the willingness of major players to resume cooperation once the political climate improves.
- The fusion of technology and energy continues: American tech giant Alphabet (parent company of Google) announced in December its acquisition of Intersect Power, focused on renewable energy projects and grid infrastructure (including data center energy supply) for $4.7 billion. This move will accelerate Alphabet's development of its own generation based on renewable sources and reduce the dependence of its data centers on overloaded power grids.
