Global News in the Oil, Gas, and Energy Sectors for Monday, February 2, 2026: Oil and Gas, Electricity, Renewable Energy, Coal, Refineries, Key Developments in the Commodity and Energy Markets for Investors and Energy Sector Participants.
Global news in the fuel and energy sector for Monday, February 2, 2026, covers critical developments in the oil and gas industry and electricity generation. It examines trends in oil and gas markets, the influence of geopolitics and sanctions, extreme winter conditions, the transition to renewable energy, the coal market situation, and domestic measures to stabilize fuel prices. These events shape a complex backdrop for investors and companies, reflecting the intricacies of the global energy market.
Oil Market: Winter Demand Supports Prices Amid Oversupply Concerns
Global oil prices have stabilized at relatively elevated levels due to a variety of factors; however, further increases are constrained by expectations of oversupply later in the year. The North Sea Brent blend is hovering around $64–66 per barrel, while U.S. WTI is at $60–62, rebounding from five-month lows at the end of 2025. Prices remain below last year's peaks, and investors are exercising caution amid mixed signals regarding demand and supply.
- Seasonal Demand and Weather: A cold winter in the Northern Hemisphere is leading to increased heating fuel demand. The rise in consumption of petroleum products, especially diesel, is supporting oil prices, partially offsetting the slowdown in the global economy.
- Geopolitical Risks: Tensions in the Middle East are pushing prices higher. The U.S. administration has renewed its tough rhetoric towards Iran, increasing the risk premium in oil prices due to the threat of supply disruptions.
- Financial Factors: A weakened U.S. dollar has reduced the cost of commodities for holders of other currencies, stimulating investors' interest in oil. Hedge funds have increased long positions, signaling a return of speculative optimism to the market.
- OPEC+ Policy: The oil alliance is maintaining a cautious approach to production. Voluntary restrictions by several members have been extended until the end of Q1 2026 to prevent market oversaturation. The retention of quotas supports prices and prevents declines during the seasonally weak demand period.
The combined effects of these factors are keeping oil prices stable compared to recent lows. However, outlooks from the International Energy Agency warn that global oil inventories may begin to rise by millions of barrels per day in the second half of 2026 if demand does not accelerate. The risk of oversupply limits the potential for further increases in oil prices, and markets are adopting cautious expectations for the near future.
Gas Market: Europe Rapidly Depleting Supplies Amid Cold Weather
The global gas market is characterized by varying trends across different regions. In Europe, extreme cold has led to a surge in gas consumption and record fuel withdrawals from storage, while North America faces a localized price crisis, and Asia remains relatively balanced.
- Europe: EU countries entered February with sharply reduced gas supplies. Underground storage is only filled to approximately 45% of capacity (compared to around 55% a year ago) — significantly lower than the peaks seen in 2022. Nevertheless, active LNG imports and stable pipeline supplies from Norway and North Africa are keeping prices at relatively moderate levels. Prices at the TTF hub have stabilized around €40 per MWh after a surge in January — significantly below the peaks of 2022.
- U.S.: In North America, gas prices have risen significantly. In January, the Henry Hub hub exceeded $5 per million BTU, over 50% higher than a year ago. This increase is due to record LNG exports from the U.S. and anomalous cold spells leading to frozen wells and production disruptions. The gas shortage in the domestic market has forced energy companies to temporarily shift to coal generation to prevent outages and curb price increases for consumers.
- Asia: In major Asian economies (China, Japan, South Korea), gas prices remain relatively stable. A mild start to winter and long-term LNG contracts have shielded the region from fuel shortages. Moderate economic growth rates in China and India are restraining demand increases, resulting in low competition with Europe for spot LNG shipments.
Weather conditions are already causing energy supply disruptions: January storms led to widespread power outages in the U.S. and Northern Europe. In the coming weeks, the key factor will be weather; continued severe cold in February may complicate supply situations in Europe and cause further price fluctuations in the global gas market.
International Politics: Sanctions Pressure and Geopolitical Risks
Geopolitical factors continue to affect the energy sector. The collective West maintains a stringent sanctions regime against Russia. By the end of 2025, the European Union approved its 19th package of sanctions, closing the last loopholes for circumventing the oil embargo, and effective January 1, 2026, it has implemented a complete ban on the purchase of Russian pipeline gas, bringing Europe's energy dependence on Russia to a logical conclusion. The United States has expanded its restrictions by imposing sanctions on Russia's largest oil companies and a 25% duty on a number of Indian goods — signaling to New Delhi regarding the import of Russian oil. Russian oil and gas are now sold only to a limited number of countries — primarily China and India — at significant discounts.
At the same time, cautious signals for dialogue have emerged. According to insiders, the U.S. is discussing scenarios for the gradual normalization of relations with Russia with allies in closed talks in the event the Ukrainian crisis is resolved. No easing of sanctions has taken place yet, but the mere fact of such consultations signifies a search for diplomatic solutions for the future. Additionally, Washington has indicated the possibility of lifting new duties against India after it has reduced its purchases of Russian oil. While these targeted steps have yet to change the situation significantly, markets are responding positively to any hints of de-escalation. However, if peace negotiations stall, sanctions pressure may increase, creating long-term risks for the oil and gas sector.
Restructuring Energy Trade and New Alliances
Sanctions and shifts in global political priorities force countries to realign their energy supply chains. New trade routes and partnerships are forming, changing the landscape of the global energy sector:
- Russia – China: Moscow is redirecting its exports of oil, gas, coal, and electricity to the East, increasing shipments to China to compensate for lost European markets.
- Europe and New Partners: The EU is diversifying its supplies: increasing gas imports from Norway and Algeria, oil from the Middle East and Africa, and stimulating purchases of oil products from India instead of Russia. European refineries have already adapted their logistics for new raw materials, reducing dependence on Russia.
New agreements also encompass advanced technologies. Partners invest in hydrogen energy, biofuels, and energy storage systems, laying the groundwork for future resilience of the global energy landscape.
Renewable Energy and the Global Energy Transition
At the January IRENA assembly in Abu Dhabi, country leaders reaffirmed their commitment to an accelerated transition to renewable sources. Major oil and gas states are announcing substantial investments in solar and wind power generation, while the EU is introducing new renewable energy capacities under the REPowerEU initiative to replace gas and achieve climate goals.
Oil and gas corporations are also adapting to new realities. A portion of excess profits from expensive hydrocarbons is being allocated towards "green" projects — from offshore wind farms to the production of "green" hydrogen. Many companies are setting targets for carbon neutrality by 2050 and expanding their presence in renewable energy, biofuels, and energy storage sectors to maintain competitiveness in the future.
At the same time, the energy transition faces challenges. In some countries, shifts in political direction (for example, in the U.S.) are temporarily weakening state support for clean energy; however, the private sector continues to actively invest in renewables. Thus, the "green" trend remains a strategic direction, even if short-term fluctuations due to political circumstances are possible.
Coal Market: Demand Approaches Historical Highs
Global coal consumption reached record levels in 2025, primarily driven by Asian countries, where rising electricity demand and high gas prices led to increased coal burning. The coal market remains tight, with prices holding at high levels. However, as renewable energy sources are rapidly integrated, global demand is expected to plateau soon, followed by a decline. For now, coal remains an important source of baseload generation, particularly in developing economies.
Russian Oil Products Market: Price Stabilization Through State Efforts
By the beginning of 2026, retail prices for gasoline and diesel in Russia have stabilized after a sharp rise last year, prompted by tax changes and increased exports. The government intervened by temporarily limiting petroleum products exports and providing subsidies to refineries to saturate the domestic market. These measures have halted price increases.
Authorities have expressed willingness to extend regulation to avoid a new fuel crisis. The phased lifting of the gasoline export ban is also being considered to prevent storage overflow and refinery surpluses. Thus, the balance of interests between consumers and fuel producers is maintained by manual intervention — the state continues to play a key role in ensuring price stability in the domestic market.
