Global News in the Oil, Gas, and Energy Sector as of January 31, 2026: Oil, Gas, Electricity, Renewable Energy, Coal, Petroleum Products, and Key Trends in the Global Energy Sector for Investors and Market Participants.
The end of January 2026 is marked by growing geopolitical tensions and a large-scale reconfiguration of global energy resource flows within the world fuel and energy complex. Western countries continue to exert strict sanction pressure on Russia—the European Union has introduced new restrictions on energy trading. Simultaneously, the escalation of the situation surrounding Iran in the Middle East has raised fears about oil supply disruptions, leading to a sharp increase in prices.
On the global oil market, after several months of relative stability, there has been a noticeable surge in prices. The benchmark Brent crude oil surpassed $70 per barrel for the first time since July, while WTI approached $65, reaching six-month highs amid heightened risks. The European gas market is adapting to winter under new conditions, virtually devoid of Russian gas, and is currently maintaining stability: high storage levels and diversification of supply sources have helped avert shortages. However, by the end of January, gas reserves in EU underground storage facilities decreased to approximately 44% of total capacity—the lowest level for this date since 2022—and by spring, they may drop below 30%, posing a serious challenge for replenishment.
The energy transition is gaining momentum: in 2025, record capacities of renewable energy were introduced worldwide, although the reliable operation of energy systems still requires reliance on traditional resources. For instance, a recent anomalously cold spell in the U.S. forced energy providers to sharply increase generation at coal-powered plants to meet peak demand. In Asia, demand for coal and hydrocarbon raw materials remains high, supporting raw material markets despite climate concerns. In Russia, after the spike in fuel prices last fall, the government extended emergency measures to limit the export of petroleum products to maintain stability in the domestic fuel market. Below is a detailed overview of key news and trends in the oil, gas, energy, and raw materials sectors at the end of January 2026.
Oil Market: Prices Rise Amid Middle Eastern Risks
Global oil prices significantly increased by the end of January. Brent quotes remain above $70 per barrel (peaking around $71), while WTI is trading around $65—this marks the highest levels since mid-2025. This growth followed a period of relative stability in the second half of 2025, when an oversupply and moderate demand kept prices around $60. The primary driver of the current rally has been geopolitics: the escalation of the conflict around Iran and threats to shipping through the Strait of Hormuz—a key artery for global oil trade—have resulted in the embedding of a risk premium in prices.
Nevertheless, fundamental factors in the oil market still signal a significant supply surplus. OPEC+ countries increased production in the second half of 2025 as they sought to regain lost market shares, leading to the formation of a surplus of around 2 million barrels per day. Additional volumes are coming from outside the cartel; the U.S. has partly lifted restrictions on production in Venezuela, allowing its oil to return to the market, and production in America is approaching record levels. Global demand for oil has slowed amid a weakening global economy (especially reduced growth rates in China) and energy-saving effects following the price shocks of previous years. Some analysts predict that, barring new disturbances, the average price of Brent in 2026 could remain around $60–62 per barrel due to the ongoing supply surplus. In the short term, however, price dynamics will depend on the development of the geopolitical situation. Possible escalation of the conflict in the Middle East could push prices even higher, while progress in negotiations (such as on Iranian or Ukrainian issues) might ease market tensions. Additionally, financial factors are influencing prices: expectations of a dovish shift in U.S. Federal Reserve policy are weakening the dollar, which temporarily supports commodity prices, including oil. Thus, oil is trading in a higher range due to geopolitical risks, but stable supply may constrain further price increases.
Gas Market: Winter Stability and Challenges in Replenishing Supplies
The European natural gas market is entering the final phase of winter relatively calmly thanks to established reserves and new supply routes. By the start of the heating season, EU countries filled their underground storage facilities (USFs) to over 90%, providing a safety margin for the cold months. As of late January, the storage levels have dropped to about 44% of total capacity, the lowest figure for this time of year since 2022. However, the exchange prices for gas remain comparatively moderate and significantly lower than the peaks of last winter. Several factors contribute to this: mild weather for most of the season, record liquefied natural gas (LNG) purchases on the global market, and stable pipeline supplies from Norway, North Africa, and Azerbaijan. Thanks to the diversification of sources, Europe has thus far successfully covered current demand while compensating for the absence of Russian gas.
However, significant challenges are emerging for the EU gas sector. If current trends continue, gas storage levels might drop to around 30% by March, and European companies will need to inject about 60 billion cubic meters of gas to return to last year's filling levels. Ensuring such replenishment without traditional Russian supplies is a daunting task. Ahead of the next heating season, the European Union is actively ramping up infrastructure to receive LNG (new regasification terminals are being built) and signing long-term contracts with alternative suppliers. Moreover, in January, the EU reaffirmed its strategic decision to completely cease importing Russian gas (both pipeline and LNG) by 2027, thus ending a long-standing dependency. The volumes lost are anticipated to be compensated primarily through the global LNG market—the International Energy Agency expects that global LNG supplies will hit a new record in 2026 (around 185 billion cubic meters) due to the launch of export projects in the U.S., Canada, and Qatar. At the same time, the pricing situation raises questions: the TTF gas hub is experiencing an anomalous backwardation (where summer futures are more expensive than winter ones), which reduces incentives for gas injection into storage. Experts warn that without special support measures, such market conditions may complicate preparations for the next winter. Overall, the European gas market is now significantly more stable than during the 2022 crisis, but maintaining this stability will require further diversification of supplies, development of storage systems, and possibly coordinated actions by authorities to stimulate necessary reserves.
International Politics: Sanctions and Energy
The sanctions standoff between Moscow and the West continues to shape the landscape of global energy. By the end of 2025, the European Union approved its 19th package of restrictive measures, a substantial part of which targets the fuel and energy sector—from tightening the price cap on Russian oil to prohibiting the export of equipment and services for extraction. The United States and its allies are also signaling they are prepared to increase pressure: new sanctions measures are under discussion, including mechanisms for seizing frozen Russian assets to finance Ukraine's recovery. Although some dialogue channels between governments remain open, there are currently no concrete signals of a softening of sanctions. For markets, this means the maintained division of energy flows into "permitted" and "alternative." Russian oil and gas continue to be redirected to Asia at discounts—to countries such as China, India, and Turkey—while European consumers have completely pivoted to other sources. Two parallel pricing zones have effectively formed: the western one, where there is a rejection of Russian energy, and the alternative, where Russian barrels and cubic meters find demand but at deflated prices and extended logistics. Investors and market participants are closely monitoring sanction policies, as any changes immediately impact supply routes and pricing dynamics.
In addition to the Russia-Ukraine conflict, sanctions against other countries continue to influence the energy sector. In January, the U.S. and EU expanded their sanction lists against Iran—in response to repressions against protesters and disputes over its nuclear program—complicating the trade of Iranian oil and adding uncertainty to the market. Simultaneously, the sanction regime regarding Venezuela is gradually being adjusted: following the easing of American restrictions in the fall of 2023, Venezuela's oil industry has begun to increase output, and major companies (ExxonMobil, Chevron, and others) are exploring new projects in the country. This return brings part of the previously lost volumes of heavy oil back to the global market. Geopolitical barriers also impact corporate deals: for example, the American investment firm Carlyle Group has agreed to acquire the majority of the foreign assets of Lukoil, which the second-largest oil company in Russia had to put up for sale due to sanctions. This example illustrates how international players are restructuring their strategies and assets under the pressure of sanctions. Overall, the energy sector remains a focal point of global politics: sanctions, conflicts, and diplomatic solutions directly determine global flows of oil and gas, heightening the role of political risks in investment decisions by energy sector companies.
Energy Transition: Records and Balance
The global shift to clean energy in 2025 was marked by an unprecedented increase in renewable generation. Many countries saw record additions of new solar and wind power capacities:
- EU: about 85–90 GW of renewable energy sources added in one year;
- U.S.: the share of renewable electricity exceeded 30% in the overall energy balance for the first time;
- China: dozens of gigawatts of new "green" power plants were introduced, breaking national records for renewable energy installation.
The rapid growth of the renewable sector raises questions about the reliability of energy systems. In periods of calm or absence of sunlight, backup capacity from traditional power plants is still required to cover peak demand and prevent disruptions in energy supply. For instance, during a severe cold spell in the U.S. in January 2026, grid operators were forced to increase generation at coal-fired power plants by more than 30% to satisfy a sharp rise in electricity consumption—this case underscored the importance of having sufficient capacity reserves in extreme conditions. This is why energy storage projects are actively being implemented worldwide: large battery farms for electricity storage are being constructed, and technologies for storing energy in the form of hydrogen and other fuels are being explored. The development of storage systems will smooth out fluctuations in renewable generation and enhance the resilience of energy systems as the share of renewable energy increases.
Meanwhile, energy companies are searching for a balance between environmental goals and profitability. The experience of BP, which in 2025 announced a reduction in investments in renewable energy and write-downs of several billion dollars for "green" assets, demonstrated that even industry giants must adjust their strategies. Despite the rapid growth of the clean sector, traditional oil and gas businesses continue to generate the majority of profits, and shareholders demand a measured approach. "Green" projects must be developed without compromising companies' financial stability. The energy transition is progressing at a rapid pace; however, the main lesson from 2025 is the need for a more balanced strategy that combines accelerated deployment of renewable energy with maintaining reliability of energy systems and profitability of investments in the sector.
Coal: High Demand in Asia
The global coal market remained on the rise in 2025, despite global goals to reduce coal use. The primary reason is the consistently high demand in Asia. Countries like China and India continue to burn vast volumes of coal for electricity production and industrial needs, compensating for declines in consumption in Western economies. China currently accounts for nearly half of the world's coal consumption and, even while producing over 4 billion tons annually, is compelled to increase imports during peak demand periods. India is also boosting its output, but due to its rapidly growing economy, it has to import significant volumes of fuel from abroad, primarily from Indonesia, Australia, and Russia.
The high Asian demand keeps coal prices at relatively elevated levels. Major exporters—from Indonesia and Australia to South Africa—saw revenues rise in 2025 due to stable orders from China, India, and other countries in the region. In Europe, conversely, following a temporary spike in coal usage during 2022–2023, its share is declining again due to the rapid development of renewable energy and the return to operation of several nuclear power plants. Overall, despite climate agendas, coal will retain a significant part of the global energy balance in the coming years, although investments in new coal capacities are gradually decreasing. Governments and companies strive to achieve a balance: meeting current coal demand, especially in developing countries, while simultaneously accelerating the transition to cleaner energy sources.
Russian Market: Restrictions and Stabilization
Since the fall of 2025, the Russian government has been actively intervening in the regulation of the fuel market, curbing price increases domestically. After wholesale prices for gasoline and diesel reached record levels in August, authorities introduced a temporary ban on the export of key petroleum products, which was later extended until February 28, 2026. The restrictions apply to the export of gasoline, diesel fuel, fuel oil, and gasoil. These measures have already had a noticeable effect: by winter, wholesale prices for motor fuel inside the country decreased by several dozen percent from peak levels. The growth of retail prices has significantly slowed, and by the end of the year, the situation at gas stations stabilized—fuel supplies are sufficient, and panic buying by consumers has subsided.
For oil companies and refineries (refineries), these restrictions mean lost profits in foreign markets, but the government requires businesses to "tighten their belts" for the sake of price stability within the country. The production costs of oil at most Russian fields remain low, meaning that even if the price of Russian crude oil falls below $40 per barrel, it does not lead to direct losses and allows for profitability. However, the reduction in export revenues jeopardizes the realization of new projects, which require higher world prices and access to foreign markets for their payback. The government refrains from directly subsidizing the sector, stating that the situation is under control and that energy sector companies continue to generate profits even with reduced exports. The domestic fuel and energy sector is adapting to the new conditions. The main task for 2026 is to maintain a balance between curbing domestic energy prices and supporting export revenues, which are critically important for the budget and the development of the sector.
