Global news from the oil, gas, and energy sector for Monday, February 2, 2026: oil and gas, electricity, renewables, coal, refineries, key events in the commodities and energy market for investors and participants in the energy sector.
Global news from the fuel and energy complex for Monday, February 2, 2026, covers key events in the oil and gas industry and electricity generation. It examines market trends concerning oil and gas, the impact of geopolitics and sanctions, extreme winter conditions, the transition to renewable energy sources, the coal market, and internal measures for stabilizing fuel prices. These events create a complex backdrop for investors and companies, reflecting the intricacies of the global energy market.
Oil Market: Winter Demand Supports Prices Amid Surplus Concerns
Global oil prices have stabilized at relatively elevated levels due to several factors, although further increases are hampered by expectations of surplus supply later in the year. The North Sea Brent blend is holding around $64–66 per barrel, while U.S. WTI is at $60–62, bouncing back from five-month lows at the end of 2025. Quotes remain below last year's peaks, and investors are exercising caution amid mixed signals of demand and supply.
- Seasonal Demand and Weather: Cold winter conditions in the Northern Hemisphere are generating increased demand for heating fuels. The rise in consumption of petroleum products, especially diesel, is supporting oil prices, partially offsetting the global economic slowdown.
- Geopolitical Risks: Tensions in the Middle East are pushing prices upward. The U.S. administration has renewed its tough rhetoric towards Iran, adding a risk premium to oil prices due to supply disruption threats.
- Financial Factors: The weakening U.S. dollar has made commodities cheaper for holders of other currencies, stimulating investor interest in oil. Hedge funds have increased long positions, signaling a return of speculative optimism to the market.
- OPEC+ Policy: The oil alliance maintains a cautious approach to production. Voluntary restrictions by several participants have been extended until the end of the first quarter of 2026 to prevent market oversupply. Retaining quotas supports prices and prevents them from falling during periods of seasonally weak demand.
The overall influence of these factors is keeping oil prices stable compared to recent lows. However, the International Energy Agency's forecasts warn that global oil inventories may begin to rise by millions of barrels per day in the latter half of 2026 if demand does not accelerate. The risk of surplus limits the potential for further increases in oil prices, with markets pricing in cautious expectations for the coming months.
Gas Market: Europe Rapidly Depletes Reserves Amid Freezing Temperatures
The global gas market is characterized by varying trends in different regions. In Europe, extreme cold has resulted in a surge in gas consumption and record withdrawals from storage, while North America faces a local pricing crisis, and Asia remains relatively balanced for now.
- Europe: EU countries entered February with sharply reduced gas reserves. Underground storage facilities are only about 45% full (compared to 55% a year ago), significantly lower than the peaks of 2022. Nevertheless, active imports of liquefied natural gas and stable pipeline supplies from Norway and North Africa are keeping prices at relatively moderate levels. Quotes at the TTF hub have stabilized around €40 per MWh after a January spike, far below the peaks of 2022.
- United States: Gas prices in North America have risen significantly. In January, the Henry Hub hub exceeded $5 per million BTU, more than 50% above levels from a year ago. The reasons include record LNG exports from the U.S. and abnormal cold weather causing well freeze-ups and production disruptions. The gas shortfall in the domestic market has forced energy companies to temporarily shift to coal generation to prevent outages and curb rising prices 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 spared the region from fuel shortages. Moderate economic growth in China and India is keeping demand increases in check, so competition with Europe for spot LNG cargoes remains low for now.
Weather conditions are already causing disruptions in energy supply: January storms led to widespread electricity outages in the United States and Northern Europe. In the coming weeks, weather will be a key factor; sustained freezing temperatures in February could complicate the inventory situation in Europe and lead to further price fluctuations in the global gas market.
International Politics: Sanctions Pressure and Geopolitical Risks
Geopolitical factors continue to impact the energy sector. The collective West maintains a strict sanctions regime against Russia. By the end of 2025, the European Union approved the 19th sanctions package, closing the last loopholes for circumventing the oil embargo, and as of January 1, 2026, introduced a complete ban on the purchase of Russian pipeline gas, marking the logical conclusion of Europe’s move away from Russian energy supplies. The United States has expanded its own restrictions by imposing sanctions on the largest Russian oil companies and 25% tariffs on a range of Indian goods — a signal to New Delhi regarding the import of Russian oil. Russian oil and gas are now being sold only to a limited number of countries — primarily China and India — at substantial discounts.
At the same time, cautious signals for dialogue have emerged. According to insiders, the U.S. is in closed discussions with allies regarding scenarios for the gradual normalization of relations with Russia in the event of a resolution to the Ukrainian crisis. No easing of sanctions has occurred yet, but the very fact of such consultations indicates a search for diplomatic solutions for the future. Additionally, Washington has allowed for the possibility of lifting new tariffs against India after it reduced purchases of Russian oil. These targeted steps have not yet significantly changed the situation, but markets react positively to any hints of de-escalation. Conversely, if peace talks stall, sanctions pressure may intensify, creating long-term risks for the oil and gas sector.
Reconfiguring Energy Trade and New Alliances
Sanctions and shifts in global political priorities are forcing countries to reconfigure 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 supplies 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 encouraging the purchase of petroleum products from India instead of Russia. European refineries have already adapted logistics to meet new raw material needs, reducing dependence on Russia.
New agreements also encompass advanced technologies. Partners are investing in hydrogen energy, biofuels, and energy storage systems, laying the groundwork for future resilience in global energy.
Renewable Energy and the Global Energy Transition
At the January IRENA assembly in Abu Dhabi, leaders reaffirmed their commitment to a rapid transition to renewable sources. Major oil and gas nations have announced significant investments in solar and wind power, while the EU, as part of the REPowerEU program, is introducing new renewable energy capacities to replace gas and achieve climate goals.
Oil and gas corporations are also adapting to the new realities. Part of the super-profits from high-priced hydrocarbons is being directed towards "green" projects — from offshore wind farms to the production of "green" hydrogen. Many companies are declaring goals for achieving carbon neutrality by 2050 and are increasing their presence in segments such as renewable energy, biofuels, and energy storage, in order to stay competitive in the future.
However, the energy transition is facing challenges. In certain countries, changes in political direction (for example, in the U.S.) temporarily weaken government support for clean energy, but the private sector continues to invest actively in renewables. Thus, the "green" trend remains a strategic direction, even if short-term fluctuations may occur due to political conjuncture.
Coal Market: Demand Near Historical Highs
Global coal consumption reached a record level in 2025, primarily driven by Asian countries, where increased demand for electricity and high gas prices led to higher coal burning. The coal market remains tense, with prices staying high. However, as the accelerated deployment of renewable energy sources occurs, global demand is expected to plateau soon, followed by a decline. For now, coal remains an important source of baseload generation, especially in developing economies.
Russian Oil Product Market: Price Stabilization Efforts by the State
By early 2026, retail prices for gasoline and diesel in Russia have stabilized after a sharp rise last year, driven by tax changes and increased exports. The government intervened by temporarily limiting oil product exports and providing subsidies to refineries to saturate the domestic market. These measures have halted the price surge.
Authorities indicate their readiness to extend regulation to prevent a new fuel crisis. Simultaneously, a phased lifting of the ban on gasoline exports is being considered to avoid storage overflow and refinery surplus. Thus, a balance of interests between consumers and fuel producers is maintained through manual interventions — the state continues to play a key role in ensuring price stability in the domestic market.
