Current Global News in the Oil, Gas, and Energy Sector as of December 24, 2025: Oil, Gas, Electricity, Renewables, Coal, Refining, and Key Trends in the Global Energy Market.
Diplomatically, negotiations aimed at resolving the protracted conflict in Eastern Europe continue without concrete results. The stringent sanctions regime within the energy sector remains unchanged.
The global oil market is under pressure from oversupply and weakened demand. Prices for the benchmark Brent are hovering around $60 per barrel—a low not seen since approximately 2021. This indicates a surplus of crude oil in the market. The European gas market demonstrates relative resilience; even at the peak of winter demand, gas storage facilities in the EU are filled to about 67%, effectively eliminating the risk of shortages. Stable supplies of liquefied natural gas (LNG) and alternative pipeline fuels are keeping prices at moderate levels, significantly lower than the peaks of 2022, easing the burden on consumers.
Meanwhile, the global energy transition is gaining momentum. Many countries are setting new records for electricity generation from renewable sources (RES), although traditional coal and gas power plants still play an important role for grid reliability. Below is a detailed overview of key news and trends in the oil, gas, electricity, and raw materials sectors as of this date.
Oil Prices and OPEC+ Strategy
The oil market continues to face downward pressure on prices: Brent is trading around $60 per barrel, while WTI is around $55. These are the lowest levels in nearly four years. The main reasons for this price decline include:
- Increased Supply. OPEC+ countries have ramped up production by millions of barrels per day, creating an oversupply of crude and additional pressure on prices.
- Hopes for Peace. Progress in negotiations to resolve the conflict has generated expectations of easing sanctions and the return of Russian oil to the market, further impacting prices.
- OPEC+ Policy. After months of increased production, participants of the agreement decided to pause further increases in supply in Q1 2026 to prevent oversupply. At their December meeting, the alliance only agreed to a symbolic quota increase (+137,000 barrels/day). Major exporters have expressed readiness to cut production again if prices fall below acceptable levels.
Under the influence of these factors, the global oil market is experiencing a moderate surplus. Even geopolitical incidents and new restrictions are causing only temporary price fluctuations, without changing the overall downward trend. Market participants are on the lookout for new signals—from diplomatic efforts and OPEC+ actions—that might alter the risk balance for oil prices.
Natural Gas and LNG Market
Europe has entered the winter season with relative confidence: gas storage in the EU is filled to over two-thirds of its maximum capacity, significantly reducing the likelihood of shortages even during peak demand periods. Record LNG supplies have compensated for the loss of Russian pipeline gas. As a result, gas prices have stabilized at levels significantly below the crisis peaks of 2022, providing substantial relief to consumers.
- Record LNG Imports. In 2025, Europe imported approximately 284 billion cubic meters of liquefied gas—an all-time high. The key supplier was the United States, accounting for up to 60% of the volume.
- Withdrawal from Russian Gas. The European Union aims to completely cease purchases of Russian gas by 2027. Starting in early 2026, a ban on purchasing Russian LNG on the spot market will come into effect, forcing EU countries to fully switch to alternative supply sources.
Globally, the demand for natural gas remains stable, primarily due to Asian countries. Concurrently, competition among exporters is intensifying: Middle Eastern and North African countries are actively investing in new LNG projects, hoping to capture a share of the growing market. At the same time, the expansion of gas exports from the U.S. and Australia is creating an oversupply, keeping global prices within moderate limits.
Renewable Energy: Record Growth
The year 2025 has marked unprecedented growth in "green" energy. According to industry reports, in the first half of 2025, the capacity of newly installed solar and wind power plants increased by more than 60% compared to the same period last year, and for the first time, electricity generation from RES surpassed that from coal power plants (on a half-year basis). However, even record growth is not sufficient to meet long-term climate goals—further investment and modernization of electrical grids are required.
Coal Sector: Peak Demand
Global coal consumption reached a record level in 2025 (growth of approximately 0.5%). A prolonged plateau in consumption is anticipated, followed by a gradual decline by 2030. Coal remains the largest source of electricity, but its share is beginning to shrink due to competition from alternative sources.
The regional demand dynamics for coal vary. In China, the largest consumer (over 50% of global volume), coal usage stabilized in 2025; a gradual decrease is expected by the end of the decade with the commissioning of RES capacities. In India, thanks to record hydroelectric output, coal burning has decreased for the first time in many years, while in the U.S., there has been a slight increase in the use of this fuel against the backdrop of expensive gas and extended operation of coal power plants.
Oil Products and Refining: High Margins
By the end of 2025, the oil product market is demonstrating high profitability for refineries. Global refining margins (the so-called crack spreads) have risen to multi-year highs. The reasons for this are sanctions that curtailed the export of oil products from Russia; shutdowns for repairs at several major refineries in Europe and the U.S.; as well as delays in launching new refining capacities in the Middle East and Africa. The profitability of the European diesel market, in particular, has surged: the diesel refining margin in Europe has reached levels not seen since 2023.
In response, refiners are trying to maximize their advantages during this favorable market environment. Major oil companies have reported significant increases in refining profits due to high gasoline and diesel prices. Estimates suggest that European refineries increased oil processing by several hundred thousand barrels per day in the second half of 2025. Analysts warn that without the introduction of new capacities, fuel shortages may persist, and high margins could continue into 2026.
Geopolitics and Sanctions: Market Impact
Geopolitical factors continue to significantly impact global commodity markets. Sanction restrictions in the oil and gas sector remain stringent and strictly enforced. In December, the U.S. intercepted a tanker carrying oil off the coast of Venezuela and increased pressure on the "shadow fleet" transporting Iranian oil. Despite the bans, Iranian exports reached a multi-year high in 2025 due to shipments to Asia. Russian oil and oil products have been fully redirected to alternative markets (China, India, the Middle East); however, price restrictions and EU embargoes continue to lower industry revenues. Furthermore, starting in early 2026, the EU is imposing a ban on the import of Russian LNG, effectively completing Europe's energy rift with Russia.
Against this backdrop, market participants are incorporating increased political risks and price premiums into their strategies. Any signals of easing sanctions or diplomatic progress significantly affect the market. In the meantime, companies are adapting to the new conditions—diversifying logistics and sales channels.
Investments and Projects: Looking Ahead
Despite volatility, significant investments continue to flow into the energy sector, both in traditional oil and gas and in "green" energy. Middle Eastern countries are expanding oil and gas production (e.g., ADNOC raised about $11 billion to increase gas production), while leading exporters like Qatar and the U.S. are boosting LNG export capacities. Concurrently, global corporations are investing in the construction of new solar and wind farms, as well as promising technologies including hydrogen energy and energy storage systems. A wave of new mergers and acquisitions and the launch of major projects is expected in 2026, both in the traditional segment and in the RES sector.
