Global Oil and Gas News and Energy Update for Wednesday, February 4, 2026: Oil and Gas, Electricity, Renewables, Coal, Oil Products, and Refineries. Key Events and Trends in the Global Energy Market for Investors and Industry Stakeholders.
Global news from the oil, gas, and energy sectors on Wednesday, February 4, 2026, covers key events in the oil and gas industry, electricity generation, renewable energy sources (RES), coal production, as well as the situation in oil product markets and the operation of refineries. The start of February 2026 is marked by extreme winter conditions and significant geopolitical shifts, impacting the markets for oil, gas, electricity, and other energy resources. Investors and industry stakeholders are closely monitoring developments, assessing the impact of weather anomalies, sanctions policies, and new trading alliances on the fuel and energy sector.
- Extreme cold in the US has led to a temporary reduction in oil (~15%) and gas (~16%) production; output is gradually recovering.
- Oil prices (Brent ~ $65/barrel) have stabilized after a recent spike; OPEC+ has extended its production limits until March 2026.
- The US-Iran standoff has intensified, increasing the risk of supply disruptions from the Middle East, despite separate diplomatic efforts regarding Ukraine.
- Natural gas prices in North America and Europe have surged due to the cold snap; gas reserves in the EU have fallen to minimal levels (~45% of storage capacity).
- Renewable energy has reached a record share in Europe's electricity generation; however, the harsh winter has highlighted the need for fossil-based backup capacities and grid modernization.
- The US is easing oil sanctions on Venezuela following a change in leadership; India is set to purchase Venezuelan oil instead of Iranian oil. These steps pave the way for an increase in Venezuelan oil exports to the global market.
Oil Market: Recovery in Production and Price Stability
The global oil market at the beginning of February shows relative equilibrium after a price surge at the end of January. Benchmark Brent, which had climbed above $70 per barrel at the peak of geopolitical concerns, has returned to ~$65, while WTI is at ~$60 per barrel. The pullback in prices occurred as fears of supply disruptions eased and production rebounded after severe weather.
Several factors are influencing prices:
- Seasonal Demand: The cold winter is driving increased demand for heating fuel. The rise in consumption of petroleum products (especially diesel) supports oil prices, partially offsetting the slowdown in the global economy.
- Geopolitics: The escalation of the US-Iran conflict raises the threat of export disruptions from the Persian Gulf. Washington's tough rhetoric and Tehran's reciprocal threats are adding a "risk premium" to oil prices.
- OPEC+: The alliance avoids increasing production amid fragile demand. Current quotas are extended into the first quarter of 2026, preventing market oversaturation and supporting prices during periods of high winter demand.
- Financial Factors: A weak dollar makes commodities cheaper for holders of other currencies, attracting investors. Hedge funds have increased long positions in oil, signaling a return of speculative demand.
The combined impact of these factors keeps oil prices above recent lows. However, the International Energy Agency warns that an oversupply of oil may emerge in the second half of 2026, limiting the potential for further price increases and maintaining market caution.
Gas Market: Record Cold Depletes Storage
The global gas market is experiencing sharp price surges under the pressure of abnormal cold temperatures. Extreme weather has disrupted fuel production in North America and triggered a spike in heating demand in Europe.
Situations across regions:
- Europe: Prolonged cold has led to record withdrawals from gas storage facilities. EU storage levels have dropped to about 45% of capacity - a multi-year low. However, stable flows of LNG and gas from Norway and North Africa are currently preventing shortages, keeping spot prices at around €40–50/MWh.
- US: Cold snaps have led to well freeze-ups and a spike in domestic prices. The Henry Hub price during the crisis exceeded $6 per MMBtu, more than double early winter levels. LNG exports have temporarily dropped by nearly 50% due to terminal outages and a redirection of some supplies to the domestic market, forcing the energy sector to switch to coal and oil.
- Asia: Major Asian consumers (China, Japan, South Korea) are currently avoiding gas shortages. A mild winter and long-term LNG contracts have shielded the region from disruptions, keeping price increases in check. Competition with Europe for spot LNG remains limited, thus Asian prices are lower than European ones.
In the coming weeks, weather will dictate gas market dynamics. A mild end to winter will lower prices, while a new cold front threatens to drive prices up again. Once the season concludes, Europe will need to replenish depleted reserves, competing for LNG with Asia—this will maintain pricing pressures.
Geopolitics: Sanctions and Middle Eastern Tensions
Geopolitical factors continue to impact the energy sector. The West maintains strict sanctions against Russia, and tensions are escalating in the Middle East regarding Iran.
The US has intensified pressure on Tehran: President Donald Trump deployed an aircraft carrier group to Iran's coast and threatened a strike. In response, Tehran has vowed to view any attack as "total war." This escalation raises the risk of oil export disruptions from the Persian Gulf and unnerves markets.
The EU ceased all imports of Russian pipeline gas in 2026, and the oil embargo restricts Russia's oil exports, forcing Moscow to sell to Asia at significant discounts. By the end of 2025, the US expanded sanctions, blacklisting major Russian oil and gas companies.
Energy Trade: New Routes and Alliances
The restructuring of global energy trading continues under the pressure of sanctions and changing priorities. Countries are establishing new routes and partnerships to meet their needs:
- Russia – China: Moscow is redirecting oil, gas, coal, and electricity exports eastward. Supplies to China and other Asian countries are increasing, partially offsetting the loss of the European market.
- Europe and Partners: The EU is diversifying its energy imports, ramping up gas purchases from Norway and Algeria, and oil from the Middle East and Africa. Instead of Russian oil products, European refineries are increasingly utilizing supplies from India and Gulf countries. European refineries have adapted to work with new feedstocks, significantly reducing dependence on Russia.
- India – Venezuela: New Delhi, with Washington's backing, is replacing some Iranian oil with Venezuelan oil, benefiting from eased sanctions against Caracas. This accelerates Venezuela's return to the global market and provides India with a stable source of heavy crude oil.
Electricity and Coal: Power Grids Under Strain
Abnormal cold has placed energy systems in the northern hemisphere under extreme stress. The surge in electricity consumption amid reduced gas supplies has forced several countries to urgently activate backup coal and oil facilities.
- US: Record demand has led to the declaration of a state of emergency and the activation of backup diesel generators and coal plants, preventing blackouts but increasing fuel consumption.
- Europe: Electricity demand has hit winter peaks, leading some countries to temporarily reactivate mothballed coal power plants to handle surges. Coal usage locally has increased despite an overall trend of decline. At the same time, limited network capacity forced a reduction in wind farm output during surplus generation, raising prices at other times.
Experts are calling for accelerated modernization of electricity grids and the implementation of energy storage systems to reduce dependence on coal and oil in emergencies and improve energy supply reliability.
Renewable Energy: Progress and Challenges of the Transition
The transition to clean energy continues to accelerate globally. The year 2025 saw record capacity additions in RES, strengthening the position of renewable sources in the energy balance.
- In the EU, the share of wind and solar energy in 2025 reached 30% of electricity generation for the first time, exceeding fossil contributions (29%).
- China and India also achieved record volumes of solar and wind power installations, leading to a slowdown in CO2 emissions growth in electricity generation for the first time in decades. It is anticipated that investments in green projects will remain high in 2026.
Overall, the trend towards decarbonization continues, but the recent crisis has illustrated the critical need for backup capacities. Governments and companies are seeking a compromise between accelerated development of RES and maintaining sufficient traditional capacities to ensure reliability during peak loads.
Russian Market for Oil Products: Extension of Stabilization Measures
The domestic fuel market in Russia has stabilized by early 2026 after last year's upheavals. In the fall of 2025, gasoline and diesel prices surged due to tax reforms and a surge in exports, but state intervention (export bans and refinery subsidies) halted price increases at gas stations.
The government has extended these measures: the export ban on fuel and subsidies for refineries remain in force to saturate the market, which has stabilized prices at the beginning of the year.
The authorities are willing to continue manual regulation to prevent a new fuel crisis but are discussing a gradual lifting of restrictions as the market balances—avoiding storage overflow. The balance of interests between consumers and fuel and oil companies is maintained administratively: the role of the state in curbing domestic prices remains crucial.
Market Expectations and Conclusions
Despite the upheavals, global energy markets enter February 2026 without panic. Short-term factors (weather and politics) maintain price volatility, but the balance of supply and demand remains resilient. OPEC+ adheres to a cautious strategy, preventing oil shortages; barring new shocks, oil prices are expected to remain around $60–65 per barrel until the cartel's spring meeting.
On the gas market, much depends on the weather: a mild winter end will ease prices, while a new cold front could drive them up again. Europe will need to replenish depleted gas storage facilities ahead of the next heating season, competing with Asian LNG importers—this will keep prices elevated.
Investors are closely monitoring the political agenda. Any changes to sanctions (against Iran, Russia, or Venezuela) or progress in negotiations immediately reflect on the markets. In an uncertain environment, companies prefer to hedge risks.
In the long term, the industry needs to reconcile climate goals with energy security mandates. The year 2026 will be a time for seeking compromise: while continuing the "green" course, countries and corporations must maintain sufficient fossil fuel backup capacities for reliable energy supply.
