Global Oil, Gas, and Energy Industry News as of December 22, 2025: Oil, Gas, LNG, Renewables, Coal, Refined Products, and Key Trends in the Global Fuel and Energy Sector. Analytics for Investors and Market Participants.
The global fuel and energy sector is undergoing significant changes, closely monitored by investors and market participants. Oil prices have dropped to their lowest levels in the last four years amid oversupply and geopolitical uncertainty. Europe enters winter with comfortable natural gas reserves (storage facilities are over 90% full) due to record LNG imports, stabilizing the market and gas prices. At the same time, the energy sector is rapidly transitioning to renewables: 2025 has recorded a record increase in renewable energy generation, putting the coal industry in a position of gradually declining demand. Below are the key news and trends in the fuel and energy sector as of December 22, 2025.
Oil Prices and the OPEC+ Strategy
The oil market is experiencing a price decline: benchmark Brent oil hovers around $60 per barrel, the lowest level since 2021. The primary reasons are concerns over oversupply and seasonal demand softening at the beginning of the year. In response to the situation, the OPEC+ alliance agreed to a minor production increase in December (+137,000 barrels per day) and decided to suspend further production increases in the first quarter of 2026 to prevent overproduction. Additional uncertainty has arisen from new Western sanctions against major Russian oil companies, complicating export growth from Russia.
- Supply Growth: Since April 2025, OPEC+ has gradually increased production (a total of ~2.9 million barrels/day), leading to excess oil volumes in the market against a backdrop of stable demand.
- Seasonal Factors: The beginning of the year is traditionally characterized by lower oil and refined product consumption, increasing price pressure during this period.
- Geopolitics and Sanctions: Sanction restrictions on several oil-producing countries remain in place, keeping part of the supply off the market and creating uncertainty.
In an environment of heightened volatility, oil and fuel companies strive to respond promptly to changes in market dynamics. Digital tools are aiding them: for example, the "Open Oil Market" platform allows real-time tracking of oil and refined product quotes, helping investors make faster decisions.
Natural Gas and LNG Market
The European gas market has entered the winter season relatively stably. Underground gas storage across the European Union is over 90% full, reducing the risk of shortages even in the event of colder weather. Active imports of liquefied natural gas (LNG) compensated for a sharp reduction in pipeline supplies from Russia. Gas prices in Europe have stabilized at levels significantly below the peaks of 2022, easing the expense burden for industry and households.
- Record LNG Imports: In 2025, Europe imported about 284 billion cubic meters of LNG, breaking the previous record. The key supplier has become the United States (up to 60% of the volume), alongside Qatar and other exporters.
- Exit from Russian Gas: The EU is finalizing plans to completely cease imports of Russian gas by 2027. Beginning in early 2026, a ban on purchasing Russian LNG on the spot market will come into effect, forcing EU countries to seek alternative sources.
On a global scale, demand for gas remains stable thanks to Asian markets; however, competition among suppliers is intensifying. Countries in the Middle East and North Africa are investing in LNG projects, aiming to carve out a niche in the growing market. Concurrently, increased gas exports from the United States and Australia are creating an oversupply, keeping prices within moderate ranges.
Renewable Energy: Record Growth
The year 2025 has been landmark for renewable energy. Unprecedented new capacity additions for solar and wind power plants have been observed worldwide. According to industry reports, the capacity of solar and wind installations grew by over 60% in the first half of 2025 compared to the same period last year. For the first time in history, renewable energy generation exceeded that of coal-fired power plants over six months. This rapid development of green generation is occurring against a backdrop of massive investments: approximately $2 trillion has been invested in clean energy worldwide in 2025. However, despite record growth rates, this is still insufficient to meet climate goals—further investments and upgrades to electrical infrastructure are necessary.
Notably, China's success stands out as a driver of the energy transition. By adding hundreds of gigawatts of new solar and wind capacity, China managed to curb CO2 emissions growth in 2025 while increasing electricity consumption. China's experience demonstrates that large investments in renewables can simultaneously meet growing electricity demand and reduce carbon footprints.
Coal Sector: Peak Demand
Global coal demand reached an all-time high in 2025, although growth rates have slowed to a minimum. According to the International Energy Agency (IEA), global coal consumption increased by only 0.5%, totaling approximately 8.85 billion tons—the highest volume on record, after which a prolonged plateau and gradual decline is expected by 2030. Coal remains the largest fuel for electricity generation worldwide, but its share is beginning to shrink due to competition from alternative energy sources.
Regional trends vary. In China—the largest consumer of coal (about half of global consumption)—demand stabilized in 2025, with a smooth decline expected by the end of the decade as new renewable capacity comes online. In India, record hydropower production has led to a temporary reduction in coal usage for the first time in years. In the US, a slight increase in coal consumption has been noted amid high gas prices and government support for extending coal-fired power plants. All these factors further confirm that peak global coal demand is close, and future dynamics will depend on the pace of the energy transition in major economies.
Refined Products and Refining: High Margins
The refined products market at the end of 2025 demonstrates high profitability for refiners. Global refining margin indicators ("crack spreads") have risen to multi-year highs. Reasons include sanctions (which have reduced refined product exports from Russia), the shutdown and repair of several major refineries in Europe and the U.S., and delays in commissioning new refining capacities in the Middle East and Africa. The European diesel segment remains particularly profitable: the diesel refining margin in Europe has risen to levels unseen since 2023, indicating a structural deficit of this fuel.
In response, oil refineries are maximizing throughput to take advantage of favorable market conditions. Major oil companies have reported a sharp increase in profits in the downstream sector (refining and marketing) due to high gasoline and diesel prices. According to the IEA, European refineries increased oil processing by several hundred thousand barrels per day in the second half of 2025, thanks to high margins. Analysts note that without new capacities being brought online in Europe and North America, fuel shortages may persist, sustaining high margin levels into 2026.
Geopolitics and Sanctions: Market Impact
Geopolitical factors continue to significantly influence commodity markets. Sanction regimes concerning the oil and gas sector remain in force, and strict compliance has been confirmed by recent events. In December, the U.S. intercepted an oil tanker off the coast of Venezuela, halting an attempt to circumvent sanctions. Simultaneously, the U.S. has intensified pressure on the "shadow fleet" transporting Iranian oil: despite new restrictions, exports from Iran reached a maximum in recent years due to supplies to Asia. Russian oil and refined product exports have been redirected to alternative markets (China, India, the Middle East), but price restrictions and EU sanctions continue to cut industry revenues. The European Union is also tightening restrictive measures: in addition to the oil embargo, a ban on the import of Russian LNG comes into effect in early 2026—effectively marking the end of Europe’s dependence on energy resources from Russia.
Against this backdrop, market participants are incorporating elevated geopolitical risks and price premiums into forecasts. Any signals of potential easing of sanctions or diplomatic progress could significantly affect investor sentiment. For now, oil and gas companies are adapting to the new structure of flows and prices—diversifying logistics and seeking opportunities in regions less exposed to sanctions.
Investments and Projects: Looking Ahead
Despite market volatility, major investments in energy continue worldwide. Middle Eastern countries are increasing investments in oil and gas extraction: national companies are expanding production capacities to maintain market share in the long term. In particular, the UAE's ADNOC has secured around $11 billion in funding for gas production enhancement projects. Simultaneously, leading exporters (Qatar, the U.S.) are implementing LNG terminal expansion projects, anticipating an increase in global demand for natural gas.
Significant funds are also being directed toward clean energy. Global investments in renewables continue to rise: corporations are investing in solar and wind farms, as well as energy storage infrastructure. Nevertheless, achieving decarbonization goals requires even greater efforts and resources. New technologies—such as hydrogen energy and energy storage—are becoming increasingly attractive avenues for investment. 2026 is expected to bring new mergers and acquisitions in the sector and the launch of large-scale projects in both traditional oil and gas and renewable energy sectors.
