Current News from the Oil, Gas, and Energy Sector as of December 8, 2025: Market Situation in Oil and Gas, Sanctions, Energy Security, Coal, RES, Russian Fuel Market, and Key Trends in the Energy Sector
The current developments in the fuel and energy complex as of December 8, 2025, unfold against the backdrop of ongoing severe confrontation between Russia and the West, as well as relative stability in raw material markets at the onset of the winter season. Western countries have recently intensified sanctions pressure by implementing new restrictions against the Russian energy sector and closing loopholes to circumvent the embargo.
Simultaneously, global raw material markets are demonstrating relative stability. Oil prices are holding near recent lows: Brent has stabilized in the $60–65 per barrel range after a brief dip below $60, supported by ample supply. The European gas market is entering winter with very high reserves – EU underground gas storage is over 90% full, keeping wholesale prices at a comfortable level (TTF around €30 per MWh).
Against this backdrop, the global energy transition is gaining momentum. Investments in renewable energy are hitting records and already exceed investments in fossil fuel extraction. The share of “green” sources in global electricity generation is steadily increasing. However, oil, gas, and coal still remain the foundation of the energy balance, meeting current demand and ensuring energy system security during the transition period.
In Russia, by the beginning of December, the internal fuel market has noticeably stabilized thanks to emergency measures implemented by the government in the autumn. The acute shortage of gasoline and diesel, which emerged in late summer, has mostly been resolved: wholesale prices have retreated from their peak values, independent gas stations have resumed normal operations, and regional supplies have returned to normal. Authorities are maintaining restrictions on the export of petroleum products and support measures for oil refining to prevent a recurrence of price surges and shortages during the winter period.
Below is an overview of key news and trends in the oil, gas, electricity, renewable energy, coal sectors, and the current state of the Russian fuel market.
Oil Market: Oversupply and Weak Demand Pressure Prices
Global oil prices remain at a lower level under the influence of oversupply and moderate demand. The benchmark Brent crude is trading around $64–65 per barrel, WTI is at $60–61, approximately 10% lower than a year ago. Several factors are influencing this situation:
- OPEC+ Production Increase. The OPEC+ alliance is systematically increasing supply. In December, production quotas have been raised by about 100,000 barrels per day, bringing the total increase from April to around 2.7 million barrels per day. This is leading to an increase in global oil and petroleum product inventories.
- Weak Demand Growth. Global oil consumption is growing significantly slower than in previous years. The IEA forecasts a demand increase in 2025 of only around +0.7 million barrels per day (compared to over +2 million in 2023). Contributing factors include a slowdown in the global economy, the effect of high prices from previous years (energy conservation), and structural shifts such as the accelerated adoption of electric vehicles. Weak industrial growth in China also limits the appetite of the second-largest oil consumer.
Gas Market: High Reserves in Europe and Price Stability
The gas market is entering winter in a favorable condition. EU underground gas storage is over 90% full, providing a solid buffer and keeping prices at a low level. TTF hub quotes have stabilized around €30 per MWh, significantly lower than the peaks of the last winter and indicating a balance of supply and demand in Europe.
- Europe is Ready for Winter. Record gas reserves guarantee a buffer even during severe cold spells. Slow economic growth and high renewable energy generation are restraining gas consumption in the EU, so even during colder weather, a significant portion of additional demand can be met from storage – the risk of shortage is minimal.
- Diversification of LNG Imports. Record supplies of liquefied natural gas from the USA, Qatar, Africa, and other regions have helped fill European storage facilities. In the summer, the EU took advantage of low spot prices and weak Asian demand to purchase maximum LNG, preparing for winter.
Thanks to accumulated reserves and diversified imports, Europe enters the heating season without signs of fuel shortages, and prices remain comfortable for consumers. Despite a reduction in domestic production and an almost complete cessation of Russian pipeline gas supplies, joint purchases, energy-saving measures, and accelerated integration of renewable energy sources are strengthening Europe’s energy security.
International Politics: Sanction Standoff with No De-escalation
- New Western Restrictions. In recent months, a number of additional sanctions have been imposed against the Russian energy sector. The USA has blacklisted major Russian oil and gas companies. The EU has approved a new package aimed at closing remaining loopholes in the embargo. The UK has added several foreign companies involved in Russian oil trade to the sanctions list.
- Pressure on India and China. Under Western pressure, Russia's largest Asian clients have been urged to limit cooperation. India has expressed readiness to gradually reduce purchases of Russian oil (a slight decrease is expected starting in December), while China has also received signals to cut imports. So far, neither Delhi nor Beijing is in a hurry to take concrete steps, emphasizing that their policies depend on national interests. Nevertheless, the prospect of reduced Asian demand increases uncertainty, and Russia is redirecting supplies to alternative markets.
Asia: India and China Strengthen Energy Security
Asian giants remain key drivers of global energy consumption growth. Despite external pressure, China and India prioritize the availability and reliability of energy supply, increasing imports of oil, gas, and coal on favorable terms.
- China and India. China is receiving record volumes of Russian gas and remains one of the main buyers of discounted Russian oil and coal. India has also increased its import of Russian oil to meet its needs. Both countries are in no rush to reduce cooperation with Moscow, placing energy security above external pressure.
Overall, the high demand from Asian countries offsets stagnation in consumption in the West, keeping global usage of oil, gas, and coal at high levels. The pursuit of energy security urges Asian economies to diversify sources and enter long-term deals. While China and India are gradually investing in clean energy, their purchases of traditional resources currently significantly impact the dynamics of the global energy market.
Electricity and Renewable Energy: Record Demand and New Challenges
Global electricity consumption in 2025 reaches a historic maximum, exceeding 30,000 TWh for the first time. Renewable sources now account for around 30% of this electricity. The main contribution to demand growth comes from developing Asian countries (primarily China and India), as well as the spread of electric transport and electric heating.
- Infrastructure Modernization. Worldwide, the modernization of electricity networks and generating capacities is accelerating. Significant investments are directed towards "smart" grids, energy storage, and reinforcement of transmission lines. These efforts enhance power supply reliability and prepare networks for an increasing share of renewable generation.
Coal Sector: High Demand in Asia and Accelerated Phase-Out in the West
The global coal market in 2025 remains close to record levels of consumption, although dynamics vary by region. In Asia, high demand persists, allowing global coal usage to remain at maximum levels, while in the West, consumption of this fuel is rapidly declining.
- East and West. In Asia (China, India), coal demand remains high: these countries are increasing extraction and imports to secure energy and industrial needs. Major exporters (Australia, Indonesia, South Africa, Russia) maintain high supply volumes to the East. Meanwhile, in the West, coal is being rapidly phased out: stringent environmental regulations have reduced its share to minimal levels (in the EU, it constitutes only a few percent of generation, while in the USA, consumption has fallen to 1970s levels). As long as Asian economies do not begin to significantly reduce their dependence on coal, global coal consumption will remain close to record levels.
Russian Fuel Market: Stabilization After Crisis and Internal Market Priority
By autumn 2025, the internal petroleum market of the Russian Federation has gradually stabilized after the acute supply crisis that occurred in late summer. Thanks to emergency measures taken by the government, the situation concerning gasoline and diesel has been brought under control: shortages in most regions have been eliminated, and price increases have been halted.
- Export Restrictions and Stabilization. The ban on the export of motor gasoline, implemented at the end of September, has been extended until December 31, 2025; restrictions on diesel fuel exports also remain in place (independent traders are not exporting, and oil companies are allowed only limited exports). These measures, along with subsidies for oil refiners, have proved effective: wholesale prices have retreated from peaks, and independent gas stations have resumed normal operations without supply disruptions, even in remote regions.
The government intends to maintain control over the fuel market at least until the end of winter while simultaneously developing long-term solutions to enhance the industry's resilience.
