Global Oil, Gas, and Energy Sector News for Friday, February 6, 2026: Oil and Gas, Electricity, Renewable Energy, Coal, Oil Products, and Key Market Trends
The global fuel and energy complex is demonstrating high dynamism as the weekend approaches. Oil prices have reacted with a decline to diplomatic signals, the gas market is adapting to new supply realities, and the energy transition is gaining momentum worldwide. These processes are impacting investors and companies within the fuel and energy sector, shaping the industry’s development strategy. Below are key news and trends in the oil, gas, and energy sectors as of February 6, 2026.
Oil Price Drop Ahead of US-Iran Negotiations
Oil prices have decreased amidst expectations of dialogue between Washington and Tehran. Following two days of growth, the price of a barrel of WTI crude oil has adjusted to approximately $64, while North Sea Brent is trading around $69 per barrel. Investors note that the US-Iran negotiations set to take place in Oman on February 6 have partially eased the geopolitical premium on oil prices. Previously, the market had incorporated escalation risks—fears of strikes on Iranian oil infrastructure kept prices elevated. Now, diplomatic signals from the Trump administration and Iran's willingness to discuss the nuclear program have reduced traders' anxiety.
However, volatility in the oil market persists as the outcome of the negotiations remains uncertain. The U.S. insists on an expanded agenda, including security issues, while Iran prefers to focus on sanctions and nuclear aspects. The uncertainty regarding the achievement of tangible agreements at the initial stage of talks is keeping market participants from excessive optimism. Additionally, new data from the United States have influenced oil prices: commercial crude oil inventories decreased less than expected (approximately by 3.5 million barrels according to the EIA), limiting the potential for a new price rally. Overall, oil companies and investors are closely monitoring the developments of the Washington-Tehran dialogue, recognizing its significance for market supply balance.
Sanctions, Conflicts, and Redirection of Oil Supplies
Geopolitical factors continue to impact global oil and gas markets. The war in Ukraine remains in the spotlight: ongoing strikes on energy infrastructure amplify market nervousness. President Volodymyr Zelensky emphasized that the escalation of the conflict directly affects oil prices and called on the U.S. to strengthen its support for Ukraine. Any aggravation or, conversely, softening of the sanctions standoff between Russia and the West immediately reflects on global oil and gas prices.
Meanwhile, the pressure of sanctions is leading to a reallocation of oil flows in the global market. The White House is seeking ways to displace Russian oil from key sales markets. President Donald Trump announced that he secured a pledge from India to gradually reduce its imports of Russian energy resources. As an incentive, the U.S. is prepared to lower trade tariffs for New Delhi—this step aims to increase supplies of American and Venezuelan oil to India. Although the Indian side has not officially confirmed the abandonment of Russian crude, the pressure is palpable: Indian oil refineries (refineries) reported difficulties with payments and fears of secondary sanctions, prompting them to reduce purchases of premium grades from Russia. Previously, Indian refineries enjoyed substantial profits due to significant discounts on Russian oil supplied at prices well below global levels.
According to analysts, the Russian budget is facing serious challenges due to the decline in oil and gas revenues. Key reasons for the decline in Russia's export earnings include:
- Reduction of purchases of Russian oil by major importers (primarily India).
- Increased levels of discounts on Russian crude (over 20% below global market prices).
- High domestic interest rates, hindering industry development.
- Labor shortages in the oil and gas sector.
In January alone, revenues to the Russian budget from oil and oil product exports nearly halved, hitting their lowest point since summer 2020. Western sanctions against Russian oil and oil products (including price caps and tanker fleet restrictions) are increasingly impacting sales volumes. Russian oil exports in early 2026 fell to approximately 1.2–1.3 million barrels per day (down from a record ~1.7 million b/d in 2024–2025), and experts believe that Moscow will be forced to sell smaller volumes to Asia while continuing to provide discounts. As a result, global oil flows are being reconfigured: a growing share of imports to India and other Asian countries is accounted for by Middle Eastern grades and crude from Africa and Latin America. Participants in the fuel and energy sector are preparing for an extended period of changes caused by sanctions standoffs.
Oil Production and Supply: Risks and Forecasts
Fundamental indicators in the oil market are attracting close attention. Global oil demand in 2026 continues to rise and is projected to reach a record 106.5 million barrels per day (up by +1.4 million b/d from the previous year). However, supply-side constraints are becoming evident. In Europe, the largest oil field, Johan Sverdrup (Norway), has reached peak production and is beginning to decline. According to Equinor’s management, production at Sverdrup will decrease by 10–20% this year. As Norway has become the main supplier of oil to the EU following Russia’s exit (accounting for up to 15% of the European market), declines at this key North Sea field are causing concern among buyers. Experts note that the period of oversupply that has been observed in recent years may turn into a deficit if the decline in output from aging fields is not offset by new projects. The International Energy Agency (IEA) previously stated that approximately $540 billion per year must be invested in exploration and development of new oil and gas fields worldwide to offset natural production declines and meet rising demand.
While OPEC+ countries are maintaining a cautious stance to keep the market balanced, additional barrels may enter the market if sanctions on Iran are successfully lifted—this is the goal of negotiations regarding the nuclear deal. Meanwhile, the potential for rapidly increasing supply from other regions is limited. U.S. oil production, having reached record export levels after sanctions against Russia were imposed, may soon stabilize. According to industry sources, American producers have already achieved significant growth in the last three years, and further increases in exports are encountering infrastructural and geological constraints. Thus, the question of investment activity among oil companies is coming to the forefront—without investments in new projects in the coming years, the global market risks facing a supply deficit.
Natural Gas Market: European Winter and Global Trends
Structural changes are also occurring in the natural gas market, reflecting a new reality of energy security. European countries are concluding the winter season with significantly depleted storage: gas stocks in the EU dropped to about 44% of total capacity by the end of January—one of the lowest levels in recent years. Nevertheless, gas prices in Europe remain relatively stable, without panic spikes. Contributing factors include mild weather, energy-saving measures, and most importantly—record volumes of liquefied natural gas (LNG) imports. In 2025, Europe increased its LNG purchases by approximately 30%, to a historic high of over 175 billion cubic meters, compensating for the cessation of pipeline supplies from Russia.
At the beginning of February, the European Union legally cemented its course towards completely halting purchases of Russian gas. New regulations require EU countries to prepare national plans for phasing out Russian gas and diversifying sources by March. In effect, by 2027, Europe aims to eliminate its dependence on Russian pipeline gas and even LNG, closing the door on the return of Russian fuel to its market. The resulting volumes (estimated by the IEA to be about 33 billion cubic meters between 2025–2028) will be replaced by alternatives: primarily through increased LNG imports from North America, the Middle East, and Africa.
The global gas market is prepared to support Europe and meet demand in Asia. It is projected that global LNG production will grow by approximately 7% in 2026—the highest pace since 2019. New export terminals are being launched in the U.S., Canada, and Mexico, significantly increasing supply. Major importers in Asia, such as China, are also ramping up purchases to support their economic recovery. As a result, despite the decrease in European stocks during the winter, traders do not expect a sharp fuel shortage: additional LNG supplies in the market should be sufficient to replenish storage by summer. However, experts caution that Europe must remain vigilant. In order to reliably pass through the next winter, the EU will need to actively inject gas, and price signals (such as the current "contango" price structure or level of spot quotations) will influence the pace of stock replenishment. Nevertheless, at this moment, energy companies in the region are confident in their ability to ensure the energy system's stability through global gas supplies and diversification measures.
Coal and Energy Transition: Regional Differences
Oil and gas are not the only strategic resources undergoing changes. The coal sector is witnessing a stark contrast between regions in the context of the global energy transition. Europe is rapidly phasing out coal: Czech Republic completely ceased coal mining as of February 1, 2026, closing the last mine after 250 years of operation. Now, Poland remains the only country in Europe where industrial coal mining is still ongoing. European energy companies are transitioning power plants to gas and RE, while coal mines are deemed unprofitable and exhausted. The Czech decision was motivated by the fact that the national electricity system is no longer dependent on coal, and the costs of coal mining exceed market prices by more than double. In contrast, outside Europe, many countries continue to actively utilize coal to ensure their energy stability:
- China: Coal production in 2025 reached a record 4.83 billion tons. Coal still covers over half of China’s electricity needs. To avoid capacity shortages, Beijing is constructing new coal-fired power plants until 2027 while also developing renewable energy sources.
- India: The government is simultaneously expanding coal mining and investing in RE. Government support measures allowed the reopening of 32 previously closed mines, and production is growing. The goal is to reach approximately 1.5 billion tons of coal per year and transition to exporting excess fuel. At the same time, coal helps reduce energy resource imports and keep power plants operational to ensure network stability.
- Japan: Around 30% of all electricity generation in 2026 will be supplied by coal. Authorities officially label coal-fired power plants as essential for energy system reliability—as a reserve in case of disruptions in solar and wind energy supply and to reduce dependence on expensive imported gas. Despite plans to gradually cut emissions, coal remains a strategic reserve for the Japanese economy.
- U.S.: After a prolonged decline in coal's role, demand for it unexpectedly increased by ~8% in 2025. The causes were high natural gas prices and rising energy consumption (for example, from data centers and other energy-intensive sectors). U.S. authorities even temporarily halted the retirement of older coal power plants, as coal production gained momentum as part of a strategy to strengthen energy independence.
Thus, the global energy balance regarding coal significantly varies. While European fuel companies are hastening to phase out coal to meet climate commitments, Asian economies and other nations are continuing to rely on this fuel source to address energy security challenges. The transition to clean energy is occurring unevenly: resource-rich regions are actively adopting green technologies, while others must retain coal in their energy mix to ensure reliable electricity supply and reasonable electricity prices.
Growth of Renewable Energy and Technological Trends
Renewable energy sources (RES) continue to gain traction within the global fuel and energy complex, as evidenced by investment metrics. Specifically, China is exhibiting unprecedented growth in its green sector: according to new data, over 90% of investment growth in the Chinese economy over the past year has been driven by the development of clean energy and electric transport. The manufacturing and export of solar panels, wind turbines, batteries, and electric vehicles generated around 15.4 trillion yuan in revenue for China in 2025—more than a third of the country's GDP growth. In fact, renewable energy and related high-tech sectors have become a driver of economic development, offsetting the slowdown in traditional industrial sectors.
Similar trends are observable in other regions. Worldwide, governments are entering new partnerships in the field of renewable energy, creating supply chains for hydrogen energy, and striving to secure access to critically important minerals (lithium, copper, rare earth elements) for battery and electronics manufacturing. Energy companies are actively searching for opportunities to develop these resource deposits and invest in material processing. Technological advancements are also opening new opportunities: the emergence of effective sodium batteries as an alternative to lithium-ion types has the potential to reduce dependence on lithium, which is in short supply. In energy generation, interest in geothermal installations is on the rise—modern techniques allow for heat extraction from the Earth in non-traditional areas, and the use of artificial intelligence minimizes risks associated with exploratory drilling. A number of innovative geothermal projects are already nearing commercial stages, indicating a diversification of clean energy initiatives.
Amidst the accelerated growth of renewable energy sources, the task of integrating these sources into energy systems is becoming increasingly relevant. Countries are investing in energy storage systems and "smart" grids to balance the uneven output of solar and wind facilities. For example, excess solar and wind generation in China is planned to be directed toward producing "green" hydrogen, which can then serve as an energy carrier or raw material in industry. Such projects, along with advancements in battery and hydrogen technologies, are attracting investors worldwide. Energy and oil companies are increasingly participating in green initiatives, aiming to adapt to the changing energy demand structure. As a result, renewable energy is transforming from a niche sector into a full-fledged economic sector, creating jobs, stimulating innovations, and enabling the reduction of the carbon footprint of the energy sector.
International Deals and Corporate Initiatives in Energy
Major energy and fuel companies continue to forge partnerships to strengthen their positions in the global market. This week, a significant agreement in the oil and gas sector was announced: the Turkish national oil company TPAO signed a memorandum of understanding with American oil giant Chevron. The parties intend to jointly explore opportunities for oil and natural gas exploration and production both in Turkey and abroad. According to Energy Minister Alparslan Bayraktar, this collaboration aims to support the development of new projects—from the Gabar field in Turkey to initiatives in the Black Sea—and transform TPAO into a global company. Earlier in January, TPAO entered into a similar agreement with ExxonMobil regarding oil and gas exploration on the Black and Mediterranean sea shelves. These deals reflect the overall warming of relations between Ankara and Washington, as well as Turkey's strategy to reduce its near-complete dependence on energy imports. By expanding TPAO's activities abroad and attracting international expertise, Turkey is steadily moving towards enhancing its energy security.
Other countries are also placing their bets on partnerships. Amidst the energy transition and geopolitical instability, collaborative projects allow for risk-sharing and investment attraction. Middle Eastern countries continue to collaborate with Asian consumers on LNG and oil projects, entering into long-term contracts for energy supplies. At the same time, companies across different segments—from oil and gas to electricity—are joining forces to develop electric vehicle charging infrastructure, carbon capture projects, and other promising directions. For instance, in nuclear energy, Rosatom is actively participating in international forums and signing new agreements for reactor construction (including nuclear power plant projects in Egypt and other countries), ensuring the export of Russian technologies and the loading of its enterprises. Wind and solar companies are forming consortiums to develop offshore renewable energy parks, while multinational energy corporations are investing in energy storage startups.
The global energy market is interconnected, and close cooperation among companies from various countries is becoming the norm. For investors, this is a signal that the industry is striving for resilience through diversification and technology exchange. International deals, whether in oil, gas, electricity, or renewable energy, are helping to strengthen supply chains and prepare for future challenges. Ultimately, global energy security increasingly relies on collaborative efforts rather than isolated actions by individual nations or companies.
