Global Oil, Gas, and Energy News for Wednesday, February 4, 2026: Oil and Gas, Electricity, Renewables, Coal, Oil Products, and Refineries. Key Events and Trends in the Global Energy Market for Investors and Industry Participants.
Global news concerning the oil, gas, and energy sectors for Wednesday, February 4, 2026, covers major events in the oil and gas industry, electricity, renewable energy, coal, as well as the situation in oil product markets and operations of refineries. The beginning of February 2026 takes place amid extreme winter conditions and significant geopolitical shifts, which are impacting the markets for oil, gas, electricity, and other energy resources. Investors and energy market participants are closely monitoring these developments, assessing the impact of weather anomalies, sanctions, and new trade alliances on the fuel and energy complex.
- Extreme cold in the U.S. has led to a temporary decrease in oil production (~15%) and gas production (~16%); production is gradually recovering.
- Oil prices (Brent ~ $65/barrel) have stabilized after a recent spike; OPEC+ has extended production limits until March 2026.
- The U.S.-Iran standoff has intensified, increasing the threat of supply disruptions from the Middle East, despite separate diplomatic efforts regarding Ukraine.
- Natural gas prices in North America and Europe surged sharply due to freezing temperatures; gas reserves in the EU have fallen to minimal levels (~45% of storage capacity).
- Renewable energy sources reached a record share in Europe’s electricity generation, but the harsh winter has revealed the need for fossil fuel backup capacity and modernization of the grid.
- The U.S. is easing oil sanctions against Venezuela following a change in leadership; India will be purchasing Venezuelan oil instead of Iranian oil. These steps pave the way for an increase in Venezuelan oil exports to the global market.
Oil Market: Recovery of Production and Price Stability
The global oil market at the beginning of February is showing relative equilibrium following a price spike at the end of January. The benchmark Brent, which surged above $70 per barrel at the peak of geopolitical concerns, has returned to approximately $65, while WTI has reached about $60 per barrel. The rollback of prices occurred as fears of supply disruptions eased and production recovered following the severe weather.
Several factors are influencing prices:
- Seasonal Demand: The cold winter ensures heightened demand for heating fuel. Increased consumption of oil products (especially diesel) supports oil prices, partially offsetting the slowdown in the global economy.
- Geopolitics: The escalation of the U.S.-Iran conflict raises the threat of export disruptions from the Persian Gulf. Washington's tough rhetoric and Tehran's counter-threats add a "risk premium" to the price of oil.
- OPEC+: The alliance is avoiding an increase in production against a backdrop of fragile demand. Existing quotas have been extended for the first quarter of 2026, preventing market oversupply and supporting prices during periods of high winter consumption.
- Financial Factors: A weak dollar makes commodities cheaper for holders of other currencies, attracting investors. Hedge funds have increased their long positions in oil, signaling a return of speculative demand.
The combined influence of these factors keeps oil prices above recent lows. However, the International Energy Agency warns that a surplus of oil could emerge in the second half of 2026, limiting the potential for further price increases and maintaining market caution.
Gas Market: Record Cold Depletes Storage
The global gas market is experiencing sharp price fluctuations under the pressure of abnormal cold. Extreme weather has disrupted fuel extraction in North America and triggered a surge in gas demand for heating in Europe.
Regional situations:
- Europe: Prolonged cold weather has led to record gas withdrawals from underground storage. EU storage capacity has fallen to about 45% of capacity – a recent low. However, a stable inflow of LNG and gas from Norway and North Africa is currently preventing a shortage, keeping spot prices at around €40–50 per MWh.
- The U.S.: Freezing temperatures caused well freeze-ups and a spike in domestic prices. The Henry Hub saw prices exceed $6 per MMBtu during the height of the crisis, more than doubling from early winter levels. LNG exports temporarily dropped by nearly 50% due to terminal outages and redirection of supplies to the domestic market, forcing energy producers to switch to coal and fuel oil.
- Asia: Major Asian consumers (China, Japan, South Korea) are currently avoiding gas shortages. A mild winter and long-term LNG contracts have spared the region from disruptions, curbing price increases. Competition with Europe for spot LNG remains limited, keeping Asian prices below European levels.
In the coming weeks, the weather will dictate gas market dynamics. A mild end to winter will lower prices, while a new cold front threatens to once again inflate them. Following the season, Europe will need to replenish depleted gas reserves, competing for LNG with Asia — this will keep upward pressure on prices.
Geopolitics: Sanctions and Middle Eastern Tensions
Geopolitical factors continue to influence the energy sector. The West maintains strict sanctions against Russia, and tensions are rising in the Middle East over Iran.
The U.S. has increased pressure on Tehran: President Donald Trump has sent an aircraft carrier group to the shores of Iran and threatened military action. In response, Tehran has vowed to regard any attack as a "total war." The escalation heightens the risk of export disruptions from the Persian Gulf and unsettles markets.
The European Union has completely ceased imports of Russian pipeline gas since 2026, while the oil embargo restricts Russian oil exports, forcing Moscow to sell to Asia at significant discounts. At the end of 2025, the U.S. expanded sanctions by adding the largest oil and gas companies in Russia to the list.
Energy Trade: New Routes and Alliances
The restructuring of global energy trade continues under the pressure of sanctions and shifting priorities. Countries are establishing new routes and partnerships to secure their energy needs:
- Russia – China: Moscow is redirecting its exports of oil, gas, coal, and electricity to the east. Supplies to China and other Asian countries are rising, partially offsetting the loss of the European market.
- Europe and Partners: The EU is diversifying its energy imports, increasing gas purchases from Norway and Algeria and oil from the Middle East and Africa. Instead of Russian oil products, imports from India and Persian Gulf countries are increasingly utilized. European refineries have adapted to operate on new raw materials, significantly reducing dependence on Russia.
- India – Venezuela: New Delhi, with support from Washington, is replacing part of its Iranian oil with Venezuelan oil, taking advantage of eased sanctions against Caracas. This accelerates Venezuela’s return to the global market and provides India with a steady source of heavy oil.
Electricity and Coal: Grids Under Strain
Abnormal cold has placed energy systems in the northern hemisphere under extreme pressure. A surge in electricity demand amidst reduced gas supplies forced several countries to urgently activate backup coal and oil capacities.
- The U.S.: A record demand necessitated a state of emergency and the activation of backup diesel generators and coal plants, allowing the avoidance of blackouts at the cost of increased fuel consumption.
- Europe: Electricity demand reached winter peaks, and some countries temporarily restarted idle coal-fired power plants to handle the surges. Coal utilization locally increased, despite the overall trend toward reduction. Simultaneously, limited grid capacity forced a reduction in output from wind farms during excess capacity, driving prices higher at other times.
Experts are calling for accelerated modernization of electrical grids and the implementation of energy storage systems to reduce reliance on coal and fuel oil during emergencies while enhancing the reliability of power supply.
Renewable Energy: Progress and Transition Challenges
The transition to clean energy continues to accelerate worldwide. The year 2025 marked a record increase in renewable energy capacity, solidifying the position of renewables in the energy balance.
- In the EU, the share of wind and solar energy in 2025 reached 30% of electricity generation for the first time, surpassing fossil fuels (29%).
- China and India also introduced record volumes of solar and wind power plants, marking the first significant slowdown in CO2 emissions growth in the electricity sector in decades. Investments in "green" projects are expected to remain high in 2026 as well.
Overall, the course toward decarbonization remains strong, but the recent crisis has highlighted the critical need for backup capacity. Governments and companies are seeking a balance between rapid renewable energy development and maintaining adequate traditional capacity for peak load security.
Russian Oil Products Market: Extension of Stabilization Measures
The domestic fuel market in Russia stabilized by the beginning of 2026 following last year's upheavals. In the autumn of 2025, prices for gasoline and diesel surged sharply due to tax reform and a spike in exports, but state intervention (export bans and subsidies for refineries) halted the rise in prices at gas stations.
The government has extended these measures: the ban on fuel exports and subsidies for refineries remain in force to saturate the market, stabilizing prices at the beginning of the year.
Authorities are prepared to continue manual regulation, preventing a new fuel crisis, but are discussing a phased lifting of restrictions as the market balances itself to avoid storage overflow. The balance of interests between consumers and fuel and oil companies is maintained administratively: the role of the state in suppressing domestic prices remains key.
Market Expectations and Conclusions
Despite the upheavals, global energy markets are entering February 2026 without panic. Short-term factors (weather and politics) keep price volatility, but the supply-demand balance remains stable. OPEC+ adheres to a cautious strategy, avoiding oil shortages; barring further shocks, oil prices are expected to hold around $60–65 per barrel until the cartel's spring meeting.
Much about the gas market depends on the weather: a mild end to winter will ease prices, while a new cold front could raise them once again. Europe will need to replenish depleted gas storage before the next heating season while competing with Asian LNG importers — this will maintain prices at a high level.
Investors are also closely monitoring the political agenda. Any changes in sanctions (against Iran, Russia, or Venezuela) or progress in negotiations will be instantly reflected in the markets. In times of uncertainty, companies prefer to hedge their risks.
In the long term, the industry needs to combine climate goals with energy security objectives. The year 2026 will become a time of seeking compromise: while continuing the "green" course, countries and corporations must maintain sufficient backup capacity using fossil fuels to ensure reliable energy supply.
