Global Oil, Gas, and Energy Sector News for Tuesday, January 27, 2026: Oil, Gas, Electricity, Renewables, Coal, Oil Products, and Key Trends in the Global Energy Sector for Investors and Market Participants.
Current events in the fuel and energy complex on January 27, 2026, capture the attention of investors, market participants, and major energy companies due to their ambiguity. After years of lows at the end of last year, oil prices are showing signs of recovery – Brent prices have returned to the mid-$60 range per barrel amid supply disruptions and geopolitical risks. At the same time, gas markets are exhibiting a divergence: Europe continues to enjoy comfortable reserves and moderate prices, while North America has seen a price surge due to LNG exports and a harsh winter. Sanction pressure on the Russian energy sector remains: the West is imposing new restrictions; however, on the diplomatic horizon, there are the first hints of a possible compromise in the future, provided the crisis is resolved. In Asia, the largest consumers of oil and gas – India and China – continue to balance beneficial energy resource imports (including from Russia at discounts) with the development of their own production. Simultaneously, the global energy transition is gaining momentum: renewable energy is breaking records in generation and investment, although traditional resources remain necessary for the reliability of energy systems, especially during periods of weather anomalies. Demand for coal, despite environmental concerns, remains near historical highs, underscoring the dependence of many economies on this fuel in the short term. Meanwhile, in Russia's domestic market, government measures to curb gasoline and diesel prices have borne fruit: by early 2026, the situation has stabilized, and authorities are prepared to extend regulations as necessary to prevent a new wave of the fuel crisis. Below is a detailed overview of key news and trends in the oil, gas, electricity, and commodity sectors as of today.
Oil Market: Disruptions and Geopolitics Support Prices
Global oil prices continue their gradual rise following last year's downturn. The North Sea Brent is trading around $65 per barrel, while WTI is around $60, approximately 10% above recent lows. Despite persistent signs of oversupply, emerging support factors are turning the market towards an upward dynamic. Firstly, oil production in specific regions has temporarily decreased: a winter storm in the U.S. forced around 250,000 barrels per day of production offline, shutting in a number of wells in Texas and Oklahoma. Additionally, in Kazakhstan, the country's largest Tengiz field is only partially resuming operations after an accident, while the Caspian Pipeline Consortium (CPC) export pipeline has recently undergone maintenance – these disruptions limit market supply. Secondly, geopolitical tension has intensified: escalating U.S.-Iran relations have traders on edge. Washington's announcements regarding the deployment of a carrier strike group to the Persian Gulf region and mutual threats raise the stability risk of oil supplies from the Middle East. Against this backdrop, hedge funds and other investors have begun to increase long positions in oil, anticipating a potential shortage should the conflict escalate. Still, fundamental factors continue to restrain a sharper price rise. Economic growth in China has slowed, and high interest rates in the West are cooling demand – oil consumption is growing at a slower pace than before. OPEC+ is maintaining a cautious stance: insiders indicate that the alliance will refrain from increasing production at its next meeting, seeking to keep the market balanced. Thus, oil prices at the end of January are trading significantly above recent lows; however, the further price trajectory will depend on the progression of geopolitical events and the recovery of global demand.
Gas Market: European Stability and Price Surge in the U.S.
The gas market is exhibiting diverging trends across various regions:
- Europe: EU countries are approaching mid-winter with still relatively high gas reserves. As of the end of January, underground storage in the European Union is filled to about 45-50% of total capacity (although this is down from over 55% last year). Thanks to active LNG imports and previously accumulated reserves, European prices remain relatively moderate. Prices at the TTF hub, which fell below €30 per MWh (~$320 per thousand cubic meters) in December, are now fluctuating around €40 amidst a recent cold snap – this level is several times lower than the peaks of 2022. This price environment is favorable for industry and electricity production in Europe, allowing for the passage of the winter period without extreme fuel costs.
- United States: Conversely, the U.S. gas market is experiencing a significant price surge. Wholesale prices at the Henry Hub have risen above $5 per million BTU (approximately $180 per thousand cubic meters), more than 50% above last year's level. This sharp increase is linked to record LNG exports and abnormal cold weather. The U.S. is actively sending liquefied gas to Europe and Asia in winter, which reduces the supply on the domestic market and raises gas costs for power plants and residents. The situation has been exacerbated by a severe frost in January: increased heating demand coincided with production disruptions due to infrastructure icing. As a result, some American energy companies have been forced to ramp up output at coal-fired power plants to compensate for the shortfall and contain costs – temporarily, the share of coal in U.S. generation has increased despite environmental costs.
- Asia: In key Asian markets, gas prices remain relatively stable. Regional importers – such as Japan, South Korea, and China – are secured by long-term LNG contracts, and a relatively mild start to winter has not triggered a surge in demand. Moderate economic growth in China and India limits the increase in gas consumption, so competition with Europe for spot LNG cargoes has yet to intensify. However, analysts warn that a sudden drop in temperatures or an acceleration of industrial growth in Asia could change the situation. If China or other large consumers suddenly increase purchases, global gas prices could rise again, and competition between East and West for additional LNG volumes could intensify.
Thus, the global gas market demonstrates a dual picture. Europe currently enjoys relatively low prices and reliable reserves, while North America faces challenges in energy supply due to expensive gas. The Asian market remains balanced under current demand but is sensitive to weather and economic dynamics. Industry participants are closely monitoring developments: weather conditions and economic growth in the coming months could significantly impact the supply-demand balance of gas worldwide.
International Politics: Sanction Pressure and Cautious Signals for Dialogue
In the geopolitical arena, the confrontation over Russia's energy resources persists. At the end of 2025, the European Union approved another, the 19th package of sanctions, further tightening restrictive measures. In particular, the last channel for circumventing oil sanctions was closed – a ban was imposed on any financial and transport services related to the export of Russian oil, practically excluding Russian crude from entering EU markets. The introduction of the already 20th package of EU sanctions is anticipated in early 2026, which is expected to touch on new sectors (including the nuclear sector, metallurgy, oil refining, and fertilizer exports). Simultaneously, the U.S. has intensified its pressure: major Russian oil companies Rosneft and Lukoil fell under American restrictions at the end of the year, and additional 25% tariffs were imposed on several Indian products – Washington clearly linked this measure to the continuation of Russian oil imports. As a result, the cumulative sanctions regime remains extremely strict, and energy resources from Russia continue to be sold only to a limited circle of countries at significant discounts (the Urals grade is trading at about a $10 discount to Brent, close to a record level in recent years).
At the same time, on the diplomatic horizon, the first hints of a possible easing of confrontation in the future have emerged. Insiders report that in recent weeks, U.S. representatives have conveyed unofficial proposals to European allies regarding what a gradual return of Russia to the global economy could look like – of course, only if peace is reached and the Ukrainian crisis is resolved. No real sanctions relief has yet been implemented, but the mere fact of such discussions indicates a search for pathways to dialogue in the long term. Moreover, Washington is sending targeted signals of readiness for compromises with its partners: for instance, the U.S. Treasury recently acknowledged the possibility of lifting additional tariffs on India after New Delhi notably reduced its purchases of Russian oil. While these steps are limited, markets positively perceive any signs of declining sanction tensions. However, strict sanctions remain in place, and new restrictions on the Russian fuel and energy sector are still possible in the absence of progress in negotiations. Investors are paying close attention to the situation: the emergence of real peace initiatives could improve market sentiment and alleviate sanction rhetoric, whereas a lack of movement threatens further barriers for the Russian oil and gas sector.
Asia: India and China Between Imports and Domestic Production
- India: Faced with Western sanctions, New Delhi makes it clear that it cannot sharply reduce imports of Russian oil and gas, as they are critical to national energy security. Indian refiners have secured favorable terms: Russian suppliers offer Urals oil at significant discounts (the current discount is evaluated at around $10 to Brent's price) to maintain market share in India. Consequently, India continues to purchase large volumes of Russian oil at preferential prices. However, at the end of 2025, under pressure from sanction risks, Indian imports from Russia slightly decreased – traders report that December shipments fell to a two-year low. The U.S. had previously imposed additional tariffs on Indian exports due to the Russian oil issue, and now, following the reduction in purchases, Washington signals readiness to lift these 25% tariffs. Simultaneously, India is ramping up efforts to reduce its dependency on imports in the future. In August 2025, Prime Minister Narendra Modi announced the launch of a national program to develop deep-water oil and gas fields. Within this framework, the state company ONGC has started drilling ultra-deep wells (up to 5 km) in the Andaman Sea, and early results appear promising. This "deep-water mission" aims to uncover new hydrocarbon reserves and bring India closer to the goal of energy independence in the long term.
- China: The largest economy in Asia is also increasing its energy resource purchases while ramping up domestic production. Chinese importers remain the leading buyers of Russian oil (Beijing has not joined the sanctions and is capitalizing on the opportunity to acquire raw materials at reduced prices). In 2025, China's total oil imports reached record levels – according to official data, the country imported about 557.7 million tons of crude oil (≈11.5 million barrels per day), which is ~4.4% more than the previous year. The end of the year was particularly active: in December, imports exceeded 13 million b/d, hitting a historic high, partly due to purchases for strategic reserves amid low prices. Concurrently, Beijing is investing significant resources in developing its national oil and gas production. In 2025, oil production in China rose by approximately 1.7%, and gas production by more than 6%. Increasing domestic output helps partially meet the economy's needs but does not eliminate the necessity for imports. Given the immense demand, China's dependence on external supplies remains high: approximately 70% of consumed oil and nearly 40% of gas must still be purchased abroad. Beijing is seeking to diversify sources – from expanding imports from the Middle East and Russia to enhancing "green" generation domestically – yet in the coming years, China will retain its status as the world's largest energy resource importer.
Thus, the two largest Asian consumers – India and China – continue to play a key role in global commodity markets, combining strategies for ensuring imports with developing their resource base. Their actions significantly influence the balance of supply and demand for oil and gas: the volumes purchased in these countries largely determine global prices and the effectiveness of Western sanction initiatives.
Energy Transition: Renewable Energy Records and the Role of Traditional Generation
The global transition to clean energy accelerated significantly in 2025, setting new records. Many countries are experiencing unprecedented increases in electricity generation from renewable sources (RES). In Europe, by the end of 2024, total generation from solar and wind power plants exceeded generation from coal and gas-fired plants for the first time. This trend continued into 2025: thanks to the commissioning of new capacities, the share of "green" electricity in the EU is steadily increasing, while coal use in the energy balance is once again declining (after a temporary surge during the 2022-2023 gas crisis). In the U.S., renewable energy has also reached historical levels – over 30% of total generation now comes from RES, with the total volume of electricity produced from wind and solar in 2025 for the first time exceeding generation at coal plants. China, the world leader in installed RES capacity, continues to bring online tens of gigawatts of new solar panels and wind turbines, consistently setting new generation records.
Companies and investors around the globe are directing enormous resources to clean energy development. According to the IEA, total investments in the global energy sector in 2025 exceeded $3 trillion, with more than half of these investments directed towards RES projects, electricity grid modernization, and energy storage systems. In line with this trend, the European Union has set a new ambitious goal – to reduce greenhouse gas emissions by 90% from 1990 levels by 2040, which requires a fast-tracked phase-out of fossil fuels in favor of low-carbon technologies.
Despite this, energy systems still rely on traditional generation to ensure stability. The increasing share of solar and wind creates challenges for grid balancing during times when RES is unavailable (for instance, at night or during calm periods). To cover peak demand and prevent outages, in some cases, operators are again turning to coal and gas plants as backup capacity. For example, last winter, some European countries had to temporarily increase output at coal-fired plants during windless cold spells – despite environmental costs. Similarly, in the fall of 2025, expensive gas in the U.S. prompted energy providers to temporarily ramp up coal use to reduce electricity costs. To enhance supply reliability, governments of many countries are investing in expanding energy storage systems (industrial batteries, pumped storage plants) and creating "smart" grids capable of flexibly managing loads. Experts predict that by 2026-2027, renewable sources will take the lead globally in terms of electricity generation volume, finally surpassing coal. However, in the next few years, there will still be a need to keep some traditional power plants as reserves – as insurance against unforeseen disruptions. In other words, the global energy transition is reaching new heights but requires a delicate balance between "green" technologies and proven resources to ensure uninterrupted electricity supply.
Coal: Stable Market Amid Persistently High Demand
The accelerated development of renewable energy has not yet diminished the key role of the coal industry. The global coal market remains one of the largest segments of the energy balance, and global demand for coal remains consistently high. There is particularly strong demand for this fuel in the Asia-Pacific region, where economic growth and electricity needs sustain intensive coal consumption. China – the world’s largest consumer and producer of coal – is burning it at nearly record rates in 2025. Chinese mines produce over 4 billion tons of coal annually, covering most of the domestic demand; however, even these volumes barely suffice during peak load periods (such as during summer heat when air conditioning is widely used). India, possessing significant coal reserves, is also ramping up its coal consumption: over 70% of electricity in the country is still generated at coal-fired plants, and absolute consumption of this resource is growing alongside the economy. In other developing countries in Asia – such as Indonesia, Vietnam, Bangladesh, and others – new coal-fired power plants continue to be built to meet the growing needs of the population and industry.
Supply on the global market has adapted to this sustained demand. Major coal exporters – Indonesia, Australia, Russia, and South Africa – have significantly increased production and shipments of thermal coal to foreign markets over the past few years. This has helped keep prices relatively stable. Following price surges in 2022, thermal coal prices returned to regular ranges and have fluctuated in recent months without sharp changes. The balance of supply and demand appears to be stable: consumers continue to receive the necessary fuel, while producers maintain steady sales at favorable prices. Although many countries announce plans to gradually reduce coal usage for climate goals, in the short term, this resource remains indispensable for supplying energy to billions of people. Experts estimate that over the next 5-10 years, coal generation – especially in Asia – will retain significant importance despite global decarbonization efforts. Thus, the coal sector is currently experiencing a period of relative equilibrium: demand remains high, prices moderate, and coal continues to serve as one of the pillars of global energy.
Russian Oil Products Market: Measures to Stabilize Fuel Prices
In Russia's domestic fuel sector, emergency measures were taken in the second half of 2025 to normalize the pricing situation. Back in August, wholesale exchange prices for gasoline and diesel soared to new record highs, surpassing levels from the previous year. The reasons included a surge in summer demand (active tourism and the harvest season) and a reduction in fuel supply due to unscheduled maintenance at oil refineries and logistical issues. The government was forced to tighten market regulations, rapidly implementing a range of measures to cool prices:
- Ban on Fuel Exports: A complete ban on the export of automotive gasoline and diesel was introduced in September and subsequently extended until the end of 2025. This measure applied to all producers (including major oil companies) and aimed to redirect additional volumes of petroleum products to the domestic market to eliminate shortages.
- Distribution Control: Authorities tightened monitoring of fuel shipments within the country. Refineries were instructed to prioritize meeting domestic market needs and to stop the practice of multiple resales on the exchange. Simultaneously, work began on implementing direct contracts between refiners and gas station networks, which will eliminate unnecessary intermediaries from the supply chain and prevent speculative price increases.
- Industry Subsidies: Incentive payments have been retained for fuel producers. The state compensates oil companies for part of the lost profit when selling gasoline and diesel domestically (the so-called "damper"), encouraging companies to direct sufficient volumes to the domestic market even when exports would be more profitable.
The combined effect of these measures has already yielded noticeable results – the fuel crisis was largely stabilized by autumn. Although exchange prices for gasoline set records in 2025, retail prices at gas stations rose significantly slower. Official data shows that the average price of gasoline in Russia increased by about 10% over the year, which slightly exceeded the overall inflation rate. Fuel shortages at gas stations have been avoided: the network of filling stations is adequately supplied with resources, and no queues or sales restrictions have been observed. The government, for its part, has stated its readiness to continue to keep the situation under control. If necessary, export restrictions will be extended in 2026 (the extension of the ban on gasoline and diesel exports is under consideration at least until the end of winter), and in the event of new price spikes, authorities promise to utilize state fuel reserves to saturate the market. Monitoring of the fuel market's state is being conducted at the highest level – relevant ministries and the Deputy Prime Minister are overseeing the issue and assure that all efforts will be made to maintain stable gasoline and diesel prices for Russian consumers within economically justified limits.
