Current News in the Oil, Gas, and Energy Sector as of December 8, 2025: Oil and Gas Market Situation, Sanctions, Energy Security, Coal, Renewable Energy Sources, Russian Fuel Market, and Key Trends in the Energy Sector.
The current events in the fuel and energy sector as of December 8, 2025, unfold against the backdrop of an ongoing tough standoff between Russia and the West, as well as a relative stability in raw material markets at the onset of the winter season. Western nations have recently intensified sanctions pressure, introducing new restrictions against the Russian energy sector and closing loopholes that enabled bypassing the embargo.
Simultaneously, global commodity markets are demonstrating relative stability. Oil prices are hovering near recent lows: Brent has stabilized in the range of $60–65 per barrel after a brief dip below $60, supported by an abundance of supply. The European gas market enters winter with very high reserves—EU gas storage facilities are over 90% full, which keeps wholesale prices at a comfortable level (TTF around €30 per MWh).
Against this backdrop, the global energy transition is gaining momentum. Investments in renewable energy are hitting record highs, surpassing expenditures in fossil fuel extraction. The share of "green" sources in global electricity generation is steadily increasing. However, oil, gas, and coal continue to be the backbone of the energy balance, satisfying current demand and ensuring the security of energy systems during the transition period.
In Russia, by early December, the domestic fuel market has notably stabilized thanks to emergency measures implemented by the government in the autumn. The acute shortage of gasoline and diesel, which emerged at the end of summer, has been largely addressed: wholesale prices have retreated from peak levels, independent gas stations have resumed normal operations, and regional supply has returned to normal. Authorities are maintaining restrictions on the export of petroleum products and support measures for oil refining to prevent another spike in prices and shortages during the winter period.
Below is an overview of key news and trends in the oil, gas, electricity, renewable, and coal sectors, as well as the Russian fuel market as of the current date.
Oil Market: Excess Supply and Weak Demand Pressure Prices
Global oil prices remain low amid excess supply and moderate demand. The benchmark Brent is trading around $64–65 per barrel, while WTI is priced at $60–61, approximately 10% lower than a year ago. Several factors are influencing the situation:
- OPEC+ Production Increases. The OPEC+ alliance is systematically increasing supply. In December, production quotas were raised by another approximately 100,000 barrels per day, bringing the total increase since April to around 2.7 million barrels per day. This is leading to a rise in global oil and petroleum product inventories.
- Weak Demand Growth. Global oil consumption is growing significantly slower than in previous years. The IEA forecasts demand growth in 2025 to be only about +0.7 million barrels per day (compared to over +2 million in 2023). Contributing factors include a slowdown in the global economy, the effects of high prices from past years (energy conservation), and structural shifts such as the accelerated spread of electric vehicles. Weak industrial growth in China is also limiting the appetite of the world's second-largest oil consumer.
Gas Market: High Stocks in Europe and Price Stability
The gas market is approaching winter in a favorable state. EU gas storage facilities are over 90% full, providing a solid buffer and keeping prices at low levels. TTF hub prices have stabilized around €30 per MWh, which is significantly lower than last winter's peaks and indicates a balance between supply and demand in Europe.
- Europe is Ready for Winter. Record gas reserves guarantee a buffer even in severe cold conditions. Lackluster economic growth and high renewable energy generation are curtailing gas consumption in the EU, meaning that significant additional demand during colder weather can still be met from storage facilities—minimizing the risk of shortages.
- Diversification of LNG Imports. Record liquefied natural gas (LNG) supplies from the U.S., Qatar, Africa, and other regions have helped fill European storage facilities. During the summer, the EU took advantage of low spot prices and weak Asian demand to purchase maximum amounts of LNG in preparation for winter.
Thanks to accumulated reserves and diversified imports, Europe enters the heating season without signs of fuel shortages, while prices remain comfortable for consumers. Despite reduced domestic production and an almost complete halt in Russian pipeline gas supplies, joint procurement, energy conservation, and accelerated renewable energy integration are bolstering Europe's energy security.
International Politics: Sanction Confrontation Without De-escalation
- New Western Restrictions. In recent months, a number of additional sanctions have been imposed against the Russian fuel and energy sector. The U.S. has blacklisted leading Russian oil and gas companies. The EU has approved a new package aimed at closing remaining loopholes for circumventing the embargo. The UK has added several foreign companies aiding the trade of Russian oil to the sanctions list.
- Pressure on India and China. Under Western pressure, major Asian clients of Moscow are being encouraged to limit cooperation. India has indicated a willingness to gradually reduce imports of Russian oil (a slight decrease is expected as early as December), while China has also received signals to cut imports. So far, both Delhi and Beijing are slow to take real steps, emphasizing that their policies depend on national interests. However, the prospect of reduced Asian demand increases uncertainty, and Russia is redirecting supplies to alternative markets.
Asia: India and China Strengthening Energy Security
Asian giants remain key drivers of global energy consumption growth. Despite external pressure, China and India prioritize the availability and reliability of energy supply, increasing imports of oil, gas, and coal on favorable terms.
- China and India. China is receiving record amounts of Russian gas and remains one of the largest buyers of discounted Russian oil and coal. India has also ramped up its imports of Russian oil to meet its needs. Both countries are in no hurry to cut cooperation with Moscow, prioritizing energy security over external pressure.
Overall, high demand from Asian countries compensates for stagnation in consumption in the West, keeping global usage of oil, gas, and coal at high levels. The drive for energy security prompts Asian economies to diversify sources and establish long-term contracts. Although China and India are gradually investing in clean energy, it is their purchases of traditional resources that are primarily defining the dynamics of the global energy market at this time.
Electricity and Renewable Energy: Record Demand and New Challenges
Global electricity consumption in 2025 is reaching historic highs, exceeding 30,000 TWh for the first time. Renewable sources now account for around 30% of this electricity. The main contributions to demand growth are coming from developing countries in Asia (primarily China and India), as well as the spread of electric transport and electric heating.
- Infrastructure Modernization. Worldwide, the modernization of electrical grids and generating capacities is accelerating. Significant investments are being channeled into smart grids, energy storage, and enhancing transmission lines. These efforts are improving the reliability of electricity supply and preparing grids for the increasing share of renewable generation.
Coal Sector: High Demand in Asia and Accelerated Phase-out in the West
The global coal market in 2025 remains close to record levels of consumption, although dynamics vary by region. Asia continues to have high demand, allowing global coal usage to remain at maximum levels, whereas in the West, the use of this fuel is rapidly declining.
- East vs. West. In Asia (China, India), demand for coal remains high: these countries are boosting production and imports to support energy and industry. Major exporters (Australia, Indonesia, South Africa, Russia) are maintaining high supply volumes to the East. Meanwhile, in the West, coal is being rapidly displaced: strict environmental regulations have reduced its share to minimums (in the EU, it accounts for only a few percent of generation, while in the U.S., consumption has fallen to 1970s levels). Until Asian economies significantly reduce their reliance on coal, global coal consumption is expected to remain close to record highs.
Russian Fuel Market: Stabilization After Crisis and Focus on Domestic Market
In the autumn of 2025, the domestic market for petroleum products in Russia gradually stabilized after the acute supply crisis that occurred at the end of summer. Thanks to emergency measures taken by the government, the situation with gasoline and diesel has been brought under control: shortages in most regions have been eliminated, and price increases have been halted.
- Export Restrictions and Stabilization. The ban on the export of automobile gasoline, imposed at the end of September, has been extended to December 31, 2025, and restrictions on diesel fuel exports remain in place (independent traders are not exporting, while oil companies are allowed limited exports). These measures, along with subsidies for oil refiners, have yielded results: wholesale prices have retreated from peaks, and independent gas stations have resumed normal operations without supply disruptions even in remote regions.
The government intends to maintain control over the fuel market at least through the end of winter, while simultaneously developing long-term solutions to enhance the resilience of the industry.
