Global News in the Oil, Gas, and Energy Sector for Wednesday, January 28, 2026: Oil and Gas, Electricity, Renewable Energy, Coal, Refineries, and Key Trends in the Global Energy Sector for Investors and Market Participants.
Oil Prices and Market Factors
Global oil prices are showing moderate fluctuations amid mixed factors. As of the morning of January 28, 2026, North Sea Brent is trading around $65 per barrel, slightly below levels observed at the beginning of the week. Investors and oil market participants are closely monitoring the recovery of supplies from Kazakhstan: following the completion of repairs at the Caspian Pipeline Consortium terminal, Kazakh oil exports are returning to full capacity. Reports of the gradual resumption of production at the Tengiz field have alleviated supply shortage concerns, exerting downward pressure on oil prices.
Meanwhile, geopolitics continues to impact the market. New U.S. sanctions against Iran briefly pushed prices higher, but this effect was offset by reports of increased supply from other producers. At the same time, oil companies and fuel companies are adapting to the new conditions: OPEC+ countries are maintaining stable production levels, balancing the market.
Notably, changes in demand structure have emerged: India has reported a 28% reduction in imports of Russian oil and is willing to cut imports further, diversifying its raw material sources. This signals a reconfiguration of trade flows – Russian refined products continue to reach global markets indirectly through intermediary countries, but Russia's share in global oil supplies is gradually decreasing due to sanctions pressure. Investors expect that, in the absence of a global economic downturn, demand for oil will remain relatively stable.
Gas Market Under Winter Influence
Gas markets are experiencing increased volatility in early 2026 due to abnormally cold weather. The so-called "Beast from the East" has returned to Europe – an influx of Arctic air that has led to a sharp increase in demand for gas for heating. Prices for natural gas in the EU have surged significantly in recent days: quotes at the TTF hub have risen from $450 to $500 per thousand cubic meters, while regional markets in Northern Europe saw prices briefly exceeding $600. For instance, in Finland, gas prices surged to $680 per thousand cubic meters, illustrating the tight balance between supply and demand.
European energy companies are actively drawing gas from storage: the total fill level of European gas storage has dropped to approximately 46%, with some countries reporting levels as low as 30-40% (for example, ~38% in Germany, 32% in the Netherlands). Such storage levels at the end of January raise concerns among market participants, considering that several months of the heating season are still ahead. If severe frosts persist in February and March, Europe may face fuel shortages.
High demand for LNG and steady pipeline gas imports from Norway are currently preventing a fuel deficit in Europe. The situation is compounded by the fact that Russia has virtually ceased supplying gas to the EU via pipelines: following the cessation of most routes in 2022-2024, the share of Russian gas in Europe is at a minimum. Meanwhile, Gazprom is reporting record domestic gas consumption within Russia – due to the severe cold, the company has set a daily record for gas supplies to the domestic market for two consecutive days (up to approximately 1839 million cubic meters on January 25). This indicates that Russia's export capabilities are restricted by domestic demand.
The U.S. is also experiencing abnormal cold spells leading to disruptions in gas production. Reports indicate that freezing wells at certain fields have resulted in decreased daily production and rising prices on the U.S. natural gas market.
Energy Systems and Weather Catastrophes
Extreme weather conditions are testing the resilience of energy systems across different regions of the world. In the United States, a powerful snowstorm at the end of January caused power outages: over 1 million consumers were left without electricity amid the severe weather, and even two days later, around 500,000 families remained without power. Power grid companies and authorities are being forced to implement crisis measures – for example, some industrial enterprises in the eastern United States are being offered compensation for temporarily reducing energy consumption to relieve strain on the grid and avoid widespread blackouts.
In Europe, winter is also bringing challenges: heavy snowfall and winds have led to power outages in Scandinavia and the Baltic States. In Finland at the beginning of the year, tens of thousands of homes were without electricity for several days. Energy companies are mobilizing emergency crews and reserve power sources to restore electricity supplies as quickly as possible. The situation is further complicated by high demand for electricity for heating: during cold nights, the load on energy systems is reaching seasonal records. To avoid power shortages, authorities in some EU countries are even bringing coal-fired power plants back online as a reserve, despite the environmental costs.
These events underline the vulnerability of energy infrastructure in the face of climatic anomalies. Electricity has become a critical resource, and the reliability of power networks is coming to the forefront. Many countries are discussing investments in modernizing networks and creating backup generation capacities. There is also growing interest in distributed generation and energy storage solutions to reduce dependence on central networks in emergencies.
Sanctions Tightening and EU Energy Policy
The European Union continues its course towards complete independence from Russian energy supplies by introducing new sanctions and legislative restrictions. The European Commission has officially stated its intention to propose a complete ban on oil imports from Russia by the end of 2026. As such, an embargo encompassing the last channels of Russian oil supply could come into effect in the EU within a few months. Concurrently, preparations are underway to phase out Russian nuclear fuel for nuclear power plants – although specific timelines for this step have not yet been established, Brussels clearly aims to exclude all Russian resources from the energy balance.
Additionally, EU countries have formally approved a complete cessation of Russian gas imports by 2027 and intensified the sanctions regime.
- Oil and Gas: Complete cessation of Russian oil planned by the end of 2026; LNG imports to stop by the end of 2026, and pipeline gas by autumn 2027.
- Fines: Violations of sanctions will incur fines of up to 300% of the transaction amount.
- Price Caps: The price cap for Russian oil has been lowered to $44.1 per barrel starting February 2026.
These steps indicate Europe's determination to expedite its energy divorce from Russia. European refineries have adapted their logistics to source alternative raw materials – the EU is now increasing oil purchases from the Middle East and Africa while also stimulating product supplies from India and other countries. In the gas sector, Europe is betting on the increase of LNG imports from the U.S., Qatar, and other partners, along with the development of its own renewable energy sources to substitute gas. Although some states (such as Slovakia) are concerned about potential shortages and even contest certain measures, the overall European course remains unchanged – towards a long-term restructuring of the energy market.
Restructuring Energy Trade and New Alliances
Geopolitical shifts have led to the realignment of global supply chains for oil, gas, and other energy resources. New partnerships between countries are forming. Some examples of these changes include:
- Canada – India: Both countries are expanding their trade in oil and gas. Canada will increase its exports of crude oil and LNG to India, while India will ramp up reverse supplies of petroleum products to Canada.
- Russia – China: Russia plans to increase exports of oil, natural gas, coal, and electricity to China to compensate for the loss of the European market.
- Europe and New Partners: The EU is diversifying its energy imports. The EU is boosting gas imports from Norway and Algeria, along with LNG purchases from the U.S. and Qatar to replace Russian fuel.
Notably, many of the new agreements include cooperation not only in traditional energy resources but also in advanced technologies – hydrogen energy, biofuels, energy storage systems, etc. This reflects market participants' desire to look to the future, laying the groundwork for sustainable energy development.
Renewable Energy and the Global Energy Transition
Despite the turbulence in fossil fuel markets, the world continues to pursue the development of renewable energy sources. At the January IRENA assembly in Abu Dhabi, global leaders reaffirmed their commitment to accelerate the energy transition. Even traditional oil and gas countries are announcing significant investments in solar and wind energy. Europe, within the framework of the REPowerEU plan, is also increasing its renewable energy capacity to replace gas and achieve climate goals.
Leading energy corporations are adjusting to the new trend. Major oil companies are channeling part of their windfall profits from oil and gas into green projects – from wind farms to hydrogen production. Fuel giants are declaring carbon neutrality goals for 2050 and expanding their presence in renewable energy, bioenergy, and energy storage systems.
However, the energy transition faces obstacles. In some countries, a change in political direction (for instance, in the U.S.) is temporarily complicating support for clean energy, but interest from businesses and regions in renewable energy remains strong.
