Current News on Oil, Gas, and Energy as of Friday, December 26, 2025: Global Oil and Gas Markets, OPEC+ Decisions, Renewable Energy, Coal, Refineries, Electricity, and Key Trends in the Energy Sector for Investors and Market Participants.
The latest developments in the global fuel and energy complex (TEC) on December 26, 2025, capture the attention of investors and market participants with mixed signals. Intense diplomatic negotiations continue regarding the resolution of the protracted conflict in Eastern Europe, yet no concrete results have emerged so far. The U.S. and European partners have offered unprecedented security guarantees to Kyiv in exchange for a ceasefire, instilling cautious optimism about the possibility of a peace agreement. However, formal agreements have yet to be made, and the stringent sanctions regime against the Russian energy sector remains in full force.
The global oil market remains under pressure from an oversupply and weakened demand. Benchmark Brent crude prices hover around $62 per barrel — close to the lowest level since 2021, indicating a build-up of crude oil inventory. The European gas market shows resilience: even during peak winter consumption, gas storage facilities in the EU are approximately two-thirds full, effectively eliminating the risk of shortages. Steady supplies of liquefied natural gas (LNG) and alternative pipeline fuels keep wholesale prices at a moderate level, significantly lower than the peaks seen in 2022, easing the burden on consumers.
Meanwhile, the global energy transition is gaining momentum. Many countries are setting new records for electricity generation from renewable sources, although traditional coal and gas power plants still play a crucial role in ensuring system reliability. Concurrently, interest in nuclear energy is resurging in some regions as a stable low-carbon source. Global coal consumption is estimated to have reached a historic peak in 2025 and is on the verge of decline. Below is a detailed overview of the key news and trends in the oil, gas, electricity, and raw materials sectors as of this date.
OPEC+ Maintains Production to Stabilize the Market
- At the December meeting, alliance members decided to maintain current oil production quotas for the first quarter of 2026 to prevent a potential oversupply in the market.
- OPEC+ countries have already returned about 2.9 million barrels per day to the market from previously reduced volumes, yet the total production cut of approximately 3.2 million bpd remains in effect and has been extended to the end of 2026.
- The meeting occurred amid renewed U.S. efforts to achieve a peace agreement between Russia and Ukraine. OPEC+ considers that the success of negotiations and a potential easing of sanctions could bring additional oil volumes to the market, while failure would escalate sanctions pressure and restrict exports from Russia.
Oil Prices Remain Stable
Global oil prices approach the year's end without sharp fluctuations, settling in an average range. Brent is holding around $62–63 per barrel, while WTI is approximately $58–59, reflecting a balance between steady demand and sufficient supply in the oil market.
- At the beginning of the week, oil prices rose by about 2% following strong macroeconomic data from the U.S.: GDP growth in Q3 exceeded forecasts, reinforcing expectations for sustained energy demand.
- As the holiday season approaches, trading activity in markets has decreased, which further limited volatility and contributed to relative price stability by the year's end.
Natural Gas: Comfortable Stocks and Moderate Prices
The natural gas market entered winter relatively calmly. In Europe, even the cold December weather has not caused panic: EU gas storage facilities remain more than 65% filled, which is significantly above historical averages for the end of the year. This level of reserves virtually guarantees the absence of natural gas shortages this winter.
- Wholesale gas prices are maintaining moderate levels. Futures on the TTF hub are trading around €27 per MWh (approximately $320 per thousand cubic meters) — a minimum in almost 18 months, notably below the price peaks of 2022.
- Active LNG imports continue to replenish European storage: for the end of 2025, total LNG imports to Europe are expected to approach record levels. High volumes of supplies suppress price growth even as demand increases during the cold period.
- Looking ahead, a potential risk factor for prices could be competition for LNG from Asia, should economic growth in the Asia-Pacific region accelerate and lead to increased Asian demand. However, for the time being, the gas market balance remains favorable for consumers.
Geopolitics and Sanctions: Impact on Energy Supplies
Political conflicts and sanctions continue to significantly influence global energy markets, simultaneously creating threats of disruptions and hopes for improvement. In recent weeks, market attention has focused on diplomatic efforts to resolve the crisis: negotiations involving the U.S., EU, Ukraine, and Russia (including meetings in Berlin and Anchorage) demonstrate the parties' desire to find a compromise.
Thus far, no breakthrough has occurred, and strict sanctions on Russian oil and gas exports remain in place. Moreover, Washington has previously signaled its willingness to tighten measures in the absence of progress: the potential for 100% tariffs on all Chinese exports to the U.S. was discussed if Beijing did not reduce purchases of Russian oil. Nonetheless, ongoing dialogue has allowed for the postponement of the most stringent actions, and markets hope for positive shifts in the upcoming weeks. Any rapprochement could boost investor sentiment and soften sanctions rhetoric, while a breakdown in negotiations risks a new escalation of trade restrictions. Therefore, political factors remain a key uncertain driver for oil and gas supplies in 2026.
Renewable Energy: Wind Records and Investments
The renewable energy sector continues to grow rapidly worldwide, setting new capacity records and attracting substantial investments — even amid ongoing geopolitical instability. The year 2025 has been significant for "green" energy, demonstrating its resilience and appeal for capital investments.
- The UK achieved a historical peak in wind electricity generation on December 5, reaching 23,825 MW, which accounted for more than half of the country's power consumption at that time. This record was made possible by strong winter winds and the expansion of offshore wind farms.
- According to BloombergNEF, global investments in new renewable energy projects in the first half of 2025 reached a record $386 billion. The majority of funds are directed toward the development of solar and wind generation, as well as energy storage systems necessary for integrating renewable energy into the power system.
- In the U.S., a federal court lifted a ban on the construction of new wind energy facilities on federal lands and the continental shelf, which had been imposed earlier this year. The court's decision paves the way for the implementation of large offshore wind farms and supports state plans to increase the share of clean energy.
- China maintains its global leadership in renewable energy: the total installed capacity of renewable sources in the country has surpassed 1.88 TW (about 56% of total power generation capacity). The large-scale deployment of solar and wind stations, alongside storage systems, has allowed China to keep CO2 emissions stable, despite economic growth.
Nuclear Energy: A Return of Large Capacity
After a prolonged downturn in the global nuclear industry, a revival is underway. Various countries are reassessing the role of nuclear generation as a stable low-carbon energy source, seeking to reduce reliance on fossil fuels and ensure the reliability of energy systems.
- Japan is preparing for a partial restart of the largest nuclear power plant, Kashiwazaki-Kariwa. The energy company TEPCO has received approval from the Niigata Prefecture authorities and plans to launch Unit 6, with a capacity of 1,360 MW, on January 20, 2026 — the first reactor to be commissioned by the company following the 2011 disaster. The complete restoration of the 8.2-gigawatt facility is planned to be carried out in stages over several years.
- The Japanese government has announced support measures for the nuclear industry with the aim of at least doubling the share of nuclear generation in the country's energy balance by 2030. A system of government loans and guarantees for reactor upgrades will be introduced; currently, 14 of the 33 reactors remaining after the Fukushima disaster have been restarted.
- A return to nuclear energy is also observed in other regions. In Europe, the Finnish reactor Olkiluoto-3 came online at full capacity in 2025, while France and the UK are investing in the construction of new nuclear power plants. In the U.S., the extension of the lifespan of existing units and funding for small modular reactor projects are under consideration.
Coal Sector: Peak Consumption and Gradual Decline
The global coal market reached an historical peak in 2025, after which a trend reversal is forecasted. According to the International Energy Agency, global coal consumption increased by approximately 0.5% and reached about 8.85 billion tons this year. However, no further significant growth is expected: on the contrary, a gradual decline in demand for coal is projected by the end of the decade, as renewable energy, nuclear, and natural gas slowly displace coal from the energy mix.
- In the U.S., coal combustion for electricity generation increased in 2025. This was facilitated by last year's spike in gas prices and a temporary directive from the administration to extend the operation of certain coal-fired power plants that were previously scheduled for closure.
- China remains the world's largest coal consumer, accounting for about 60% of the country's electricity generation. In 2025, coal demand in China stabilized; a gradual decline is expected by 2030 due to the large-scale introduction of renewable capacities. Beijing's policy is aimed at achieving peak emissions by 2030, which implies a reduction in the role of coal in the upcoming years.
Oil Products and Refining: High Margins at Year-End
By the end of 2025, the global oil products market is demonstrating high profitability for refineries. The decline in oil prices, combined with sustained demand for gasoline, diesel, and jet fuel, has led to an increase in refining margins in many regions. Refiners are benefiting from the relative cheapness of crude while still enjoying robust levels of oil product consumption.
- Global indicative refining margins have risen to the highest values in recent years. Significant growth in profitability is observed in the diesel segment, where demand remains strong in transport and industry.
- The construction of new refineries in Asia and the Middle East (for example, large complexes in China and the Gulf countries) is increasing global refining capacity. However, the simultaneous closure of outdated plants in Europe and North America maintains a relative balance in the oil products market, preventing oversaturation and preserving profitability.
- In Russia, authorities have extended the ban on the export of gasoline and diesel following the summer crisis to saturate the domestic market and reduce prices. These measures have stabilized the situation in Russia itself but have also reduced the supply of diesel on the global market, contributing to the retention of high margins in Europe and Asia.
Corporate News: Deals and Strategies of Energy Companies
The end of the year has been marked by significant corporate moves in the TEC sector, reflecting companies' willingness to optimize asset portfolios and adapt to new market conditions. Oil and energy corporations are reassessing strategies, focusing on both enhancing the efficiency of traditional businesses and investing in the transition to clean energy.
- BP announced the sale of 65% of its subsidiary Castrol (producer of lubricants) to the American investment fund Stonepeak for $6 billion. The deal values the entire Castrol business at $10.1 billion; BP retains 35% of the shares in the new joint venture. The proceeds will be directed toward debt reduction and dividend payments, aligning with the strategy to enhance returns in the traditional oil segment.
- Despite sanctions, foreign partners maintain interest in Russian oil and gas projects. Indian ONGC and Japanese SODECO have retained their stakes in the Sakhalin-1 project, while a preliminary agreement between ExxonMobil and Rosneft to compensate for losses in previous years signals a readiness among major players to resume cooperation as soon as the political situation improves.
- The merger of technology and energy continues: the American tech giant Alphabet (parent company of Google) announced in December the acquisition of Intersect Power for $4.7 billion, focusing on renewable energy projects and grid infrastructure (including powering data centers). This move will allow Alphabet to accelerate its own renewable generation development and reduce reliance on overloaded electrical grids.
