Global Oil and 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.
The global news from the oil, gas, and energy sector for Wednesday, February 4, 2026, encompasses key developments in the oil and gas industry, electricity, renewable energy, coal, as well as the situation in the oil products markets and operations of refineries. The beginning of February 2026 is unfolding against a backdrop of extreme winter conditions and significant geopolitical shifts, influencing the markets for oil, gas, electricity, and other energy resources. Investors and participants in the energy sector are closely monitoring developments, evaluating the impacts of weather anomalies, sanction policies, and new trade alliances on the fuel and energy complex.
- Extreme cold in the USA has resulted in a temporary reduction in oil production (~15%) and gas (~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 US-Iran confrontation 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 have soared due to the cold; gas storage levels in the EU have dropped to minimal levels (~45% of storage capacity).
- Renewable energy sources achieved a record share in Europe's electricity generation, but the harsh winter has highlighted the need for backup fossil fuel capacity and modernization of grids.
- The US is easing oil sanctions against Venezuela following a change in leadership; India will purchase Venezuelan oil instead of Iranian. These moves pave the way for increased oil exports from Venezuela to the global market.
Oil Market: Recovery in Production and Price Stability
The global oil market at the beginning of February demonstrates relative equilibrium after a price surge in late January. The benchmark Brent, which rose above $70 per barrel amidst peak geopolitical concerns, has returned to approximately $65, while WTI is around $60 per barrel. The price retreat has occurred as fears of disruptions have eased and production is recovering post-weather challenges.
Several factors are influencing prices:
- Seasonal Demand: The cold winter is driving increased demand for heating fuel. The rise in consumption of oil products (especially diesel) is supporting oil prices, partially offsetting the slowdown in the global economy.
- Geopolitics: The escalation of the US-Iran conflict raises the risk of export disruptions from the Gulf. The tough rhetoric from Washington and retaliatory threats from Tehran add a “risk premium” to oil prices.
- OPEC+: The alliance is avoiding increases in production amidst fragile demand. Existing quotas are extended for Q1 2026, preventing market oversaturation and supporting prices during peak winter consumption.
- Financial Factors: A weaker dollar makes commodities cheaper for holders of other currencies, attracting investors. Hedge funds have increased long positions in oil, signaling a return of speculative demand.
The combined influence of these factors is keeping oil prices above recent lows. However, the International Energy Agency warns that an oil surplus may emerge in the second half of 2026, limiting the potential for further price growth and maintaining market caution.
Gas Market: Record Cold Depletes Storage
The global gas market is experiencing sharp price fluctuations due to abnormal cold temperatures. Extreme weather has disrupted fuel production in North America and triggered a surge in heating gas demand in Europe.
Regional Situations:
- Europe: Prolonged cold has led to record withdrawals from gas storage facilities. EU storage levels have fallen to approximately 45% capacity — the lowest in years. However, steady inflows of LNG and gas from Norway and North Africa are currently preventing shortages, keeping spot prices at around €40-50 per MWh.
- USA: The cold has caused well freeze-ups and a spike in domestic prices. The Henry Hub hub exceeded $6 per MMBtu during the crisis, more than double early winter levels. LNG exports temporarily dropped by nearly 50% due to terminal outages and redirection of some supplies to the domestic market, forcing energy companies 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 shielded the region from disruptions, keeping price increases in check. Competition with Europe for spot LNG remains limited, thus Asian prices are below European levels.
In the coming weeks, weather will dictate gas market dynamics. A mild end to winter will reduce prices, while a new cold front threatens to push prices up again. Following the season, Europe will need to replenish its depleted storage, competing with Asia for LNG — this will keep pressure on prices.
Geopolitics: Sanctions and Middle Eastern Tensions
Geopolitical factors continue to affect the energy sector. The West maintains strict sanctions against Russia, while the Middle East faces heightened tensions around Iran.
The US has intensified pressure on Tehran: President Donald Trump has dispatched an aircraft carrier group to the shores of Iran and threatened an attack. In response, Tehran vowed to regard any attack as a “total war.” This escalation increases the risk of oil export disruptions from the Persian Gulf and unnerves markets.
The European Union has completely ceased imports of Russian pipeline gas as of 2026, while the oil embargo restricts Russia's oil exports, which Moscow is forced to sell to Asia at substantial discounts. The US expanded sanctions at the end of 2025 to include major Russian oil and gas companies.
Energy Trade: New Routes and Alliances
The restructuring of global energy resource trade continues under the pressure of sanctions and shifting priorities. Countries are building new routes and partnerships to secure their energy needs:
- Russia – China: Moscow is redirecting oil, gas, coal, and electricity exports eastward. Shipments to China and other Asian countries are increasing, partially compensating for 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, supplies from India and Gulf countries are being more actively utilized. European refineries have adapted to operate on new feedstocks, significantly reducing dependence on Russia.
- India – Venezuela: New Delhi, with Washington's support, is replacing some Iranian oil with Venezuelan oil, benefiting from eased sanctions against Caracas. This accelerates Venezuela's return to the global market and provides India with a stable source of heavy crude.
Electricity and Coal: Grids on the Edge
Abnormal cold temperatures have placed energy systems in the northern hemisphere under extreme strain. The surge in electricity consumption, coupled with reduced gas supplies, has forced several countries to urgently activate backup coal and oil capacities.
- USA: Record demand has prompted states of emergency and activation of backup diesel generators and coal plants, helping to avoid blackouts at the cost of increased fuel burning.
- Europe: Electricity demand has reached winter peaks, and some countries have temporarily restarted mothballed coal power plants to cope with the surges. Coal use has locally increased despite an overall trend of decline. Simultaneously, the limited capacity of grids forced a reduction in wind farm output during excess capacity periods, raising prices at other times.
Experts are urging a faster modernization of electricity grids and the implementation of energy storage systems to reduce reliance on coal and fuel oil during emergencies and enhance energy supply reliability.
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 capacities, strengthening the position of renewables in the energy mix.
- In the EU, the share of wind and solar energy in 2025 reached 30% of electricity generation for the first time, surpassing the contribution of fossil fuels (29%).
- China and India also introduced record volumes of solar and wind power plants, leading to a slowdown in CO2 emissions growth in electricity for the first time in decades. Investments in green projects are expected to remain high in 2026.
Overall, the course toward decarbonization remains. However, the recent crisis has highlighted the critical need for backup capacities. Governments and companies are seeking a compromise between accelerating renewable development and maintaining sufficient traditional capacities to ensure peak load insurance.
Russian Oil Products Market: Extension of Stabilization Measures
The domestic fuel market in Russia has stabilized by early 2026 after last year's shocks. In the autumn of 2025, gasoline and diesel prices spiked due to tax reform and a surge in exports, but government intervention (prohibiting certain exports and subsidizing refineries) halted the rise in pump prices.
The government has extended these measures: the ban on fuel exports and the subsidization of refineries remain in force to saturate the market, stabilizing prices at the beginning of the year.
Authorities are prepared to continue manual regulation to prevent a new fuel crisis but are discussing a phased removal of restrictions as the market balances — to avoid oversaturation of storage facilities. The balance of interests between consumers and fuel and oil companies is maintained administratively: the state's role in restraining domestic prices remains key.
Market Expectations and Conclusions
Despite disruptions, global energy markets are entering February 2026 without panic. Short-term factors (weather and politics) maintain price volatility, but the balance of supply and demand remains resilient. OPEC+ is adhering to a cautious strategy, preventing oil shortages; barring new shocks, oil prices are expected to remain around $60-65 per barrel until the cartel's spring meeting.
In the gas market, much depends on the weather: a mild end to winter will lower prices, while a new cold front may raise them again. Europe will need to replenish its depleted gas storage before the next heating season, competing with Asian LNG importers — this will keep prices elevated.
Investors are also closely monitoring the political agenda. Any change in sanctions (against Iran, Russia, or Venezuela) or progress in negotiations is quickly reflected in the markets. In an uncertain environment, companies prefer to hedge risks.
In the long term, the industry needs to reconcile climate goals with energy security objectives. The year 2026 will be a time for seeking compromise: while continuing the “green” course, countries and corporations must maintain sufficient backup fossil fuel capacities to ensure reliable energy supply.
