Current News in the Oil, Gas, and Energy Sector as of December 8, 2025: Market Situation for Oil and Gas, Sanctions, Energy Security, Coal, Renewables, Russian Fuel Market and Key Energy Sector Trends.
Current events in the fuel and energy complex as of December 8, 2025, are unfolding against the backdrop of an ongoing severe confrontation between Russia and the West, alongside relative stability in commodity markets entering the winter season. Western countries have recently intensified sanctions pressure by imposing new restrictions against the Russian energy sector and closing loopholes for circumventing the embargo.
At the same time, global commodity markets are demonstrating relative stability. Oil prices remain near recent lows: Brent has stabilized in the range of $60-65 per barrel after a brief dip below $60, fueled by an abundance of supply. The European gas market is entering winter with very high stocks – EU underground gas storage is filled to over 90%, 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 reaching record highs, already surpassing 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 backbone of energy balance, meeting current demand and ensuring the security of energy systems during the transition period.
In Russia, the domestic fuel market stabilized noticeably by early December due to emergency measures taken by the government in the autumn. The acute shortage of gasoline and diesel, which emerged in late summer, has largely been rectified: wholesale prices have retreated from peak levels, independent gas stations have resumed normal operations, and supply to regions has returned to normal. Authorities maintain restrictions on the export of petroleum products and support measures for oil refining to prevent a repeat surge in prices and shortages during the winter period.
Below is an overview of key news and trends in the oil, gas, electricity, renewable, and coal sectors, as well as the Russian fuel market as of the current date.
Oil Market: Oversupply and Weak Demand Pressure Prices
Global oil prices remain at reduced levels under the influence of oversupply and moderate demand. The benchmark Brent is trading around $64-65 per barrel, while WTI is at $60-61, approximately 10% lower than a year ago. Several factors influence the situation:
- OPEC+ Production Increases. The OPEC+ alliance is steadily increasing supply. In December, production quotas were raised by approximately 100,000 barrels per day, bringing the cumulative increase since April to about 2.7 million barrels per day. This is leading to a rise in global oil and petroleum product inventories.
- Weak Demand Growth. Global oil consumption is growing significantly slower than in previous years. The IEA forecasts an increase in demand in 2025 of only about +0.7 million barrels per day (compared to more than +2 million in 2023). Contributing factors include a slowing global economy, the impact of high prices from previous years (energy conservation), and structural shifts such as the rapid spread of electric vehicles. Weak industrial growth in China is also limiting the appetite of the world's second-largest oil consumer.
Gas Market: High Stocks in Europe and Price Stability
The gas market is entering winter in a favorable state. EU underground gas storage facilities are filled to over 90% of capacity, providing a robust buffer and keeping prices low. TTF hub quotations have stabilized around €30 per MWh, several times lower than last winter's peaks and indicative of a balance between supply and demand in Europe.
- Europe is Prepared for Winter. Record gas stocks guarantee a buffer even during severe cold. Tepid economic growth and high renewable energy generation are curbing gas consumption in the EU, so even in colder weather, a significant portion of additional demand can be covered from storage, minimizing risks of shortages.
- Diversification of LNG Imports. Record deliveries of liquefied gas from the USA, Qatar, Africa, and other regions helped fill European storage. During the summer, the EU capitalized on low spot prices and weak Asian demand to procure maximum LNG in preparation for winter.
Thanks to accumulated reserves and diversified imports, Europe is entering the heating season without signs of fuel shortages, and prices remain comfortable for consumers. Despite a decrease in domestic production and an almost complete halt to supplies of Russian pipeline gas, joint procurement, energy conservation, and accelerated deployment of renewable energy sources strengthen Europe's energy security.
International Politics: Sanction Standoff with No De-escalation
- New Western Restrictions. In recent months, additional sanctions against the Russian energy sector have been imposed. The US has blacklisted major Russian oil and gas companies. The EU has approved a new package aimed at closing the remaining channels for circumventing the embargo. The UK has added several foreign companies aiding the trade of Russian oil to its sanctions list.
- Pressure on India and China. Under pressure from the West, major Asian clients of Moscow have been urged to limit cooperation. India has expressed willingness to gradually scale back its purchases of Russian oil (a slight reduction is expected as early as December), while China has also received signals to cut imports. However, neither Delhi nor Beijing is rushing to take concrete steps, emphasizing that their policies depend on national interests. Nevertheless, the prospect of reduced Asian demand heightens uncertainty, and Russia is redirecting supplies to alternative markets.
Asia: India and China Enhance Energy Security
Asian giants remain key drivers of global energy consumption growth. Despite external pressure, China and India place paramount importance on the availability and reliability of energy supply, increasing imports of oil, gas, and coal under 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 imports of Russian oil to meet its energy needs. Both nations are in no hurry to reduce cooperation with Moscow, prioritizing energy security over external pressure.
Overall, high demand from Asian countries compensates for stagnant consumption in the West, maintaining global usage of oil, gas, and coal at high levels. The pursuit of energy security is motivating Asian economies to diversify sources and enter into long-term contracts. Although China and India are gradually investing in clean energy, it is their purchases of traditional resources that largely define the conditions of the global energy market.
Electric Power and Renewables: Record Demand and New Challenges
Global electricity consumption reached a record high in 2025, exceeding 30,000 TWh for the first time. Renewables now account for about 30% of this electricity. The main contributions to demand growth come from developing countries in Asia (primarily China and India), as well as the proliferation of electric transportation and electric heating.
- Infrastructure Upgrades. Globally, the modernization of electric grids and generating capacities is accelerating. Significant investments are being directed towards "smart" grids, energy storage, and enhancement of transmission lines. These efforts improve the reliability of electricity supply and prepare grids 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. High demand persists in Asia, allowing global coal usage to remain at its maximum, while the West is rapidly reducing its coal usage.
- East vs. West. In Asia (China, India), the demand for coal remains strong: these countries are increasing both extraction and imports to meet energy and industrial needs. Major exporters (Australia, Indonesia, South Africa, Russia) are maintaining high supply volumes to the East. Meanwhile, in the West, coal is being rapidly phased out: stringent environmental standards have reduced its share to minimal levels (in the EU, it's a mere percentage of generation, while in the US, consumption has rolled back to 1970s levels). Until Asian economies significantly reduce their dependence on coal, global coal consumption is expected to remain close to record levels.
Russian Fuel Market: Stabilization After Crisis and Focus on Domestic Market
By autumn 2025, the domestic market for petroleum products in Russia gradually stabilized following the acute supply crisis that occurred in late summer. Thanks to emergency government measures, the situation with 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 automotive gasoline, imposed at the end of September, has been extended until December 31, 2025; restrictions on the export of diesel fuel also remain (independent traders are not exporting, and oil companies are only allowed limited exports). These measures, combined with subsidies for refiners, have yielded results: wholesale prices have receded 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 also working on long-term solutions to enhance the stability of the sector.
