Current News in the Oil, Gas and Energy Sector for Saturday, December 6, 2025: Price Dynamics of Oil and Gas, Stocks, Sanctions, Renewable Energy, Coal, Exports, Production, Analysis for Investors and Energy Companies.
Current events in the fuel and energy sector (FES) on December 6, 2025, reflect a multifaceted dynamic in global markets amid ongoing geopolitical tensions. World oil prices remain near multi-month lows: Brent crude is hovering around $62–63 per barrel, while U.S. WTI stands at approximately $59. These levels are significantly below mid-year figures, attributable to a combination of factors ranging from expectations of progress in peace negotiations to signs of oversupply in the market. Conversely, the European gas market is entering winter quite confidently: underground gas storage (UGS) facilities in EU countries are over 85% full, providing a solid buffer, while wholesale prices (TTF index) remain below €30 per MWh, significantly lower than the peak levels of previous years.
However, the geopolitical confrontation surrounding energy resources is intensifying. The collective West continues to increase sanctions pressure on the Russian energy sector—the European Union recently legally confirmed a phased refusal to import Russian pipeline gas by 2027 and an accelerated reduction in remaining oil supplies from Russia. Attempts at diplomatic conflict resolution have yet to yield tangible results, thereby maintaining restrictions and risks of supply disruptions. Within Russia, authorities are extending emergency measures to stabilize the domestic fuel market following the autumn deficit of gasoline and diesel, sharply limiting the export of petroleum products. Simultaneously, global energy is accelerating its green transition: investments in renewable sources are hitting records, with new incentives being implemented, though traditional resources—oil, gas, and coal—continue to play a crucial role in the energy mix of most countries. Below is a detailed overview of key news and trends in the oil, gas, electricity, and raw materials sectors as of this date.
Oil Market: Prices at Lows Under Pressure from Oversupply and Hopes for Peace
By early December, global oil prices remain under pressure and fluctuate around local lows. The Brent crude benchmark, after relative stability during the autumn, has dropped to about ~$62 per barrel, while WTI futures are at $59. Current prices are approximately 15% lower than year-ago levels. The market is partly pricing in a scenario of easing sanctions on Russian oil should peace negotiations between Moscow and Washington succeed, thereby reducing the geopolitical premium in prices. At the same time, concerns about oversupply are intensifying: industry data indicates growth in global crude oil and fuel stocks, while seasonal demand declines at the year-end and China’s economic slowdown limit consumption. The oil alliance OPEC+ confirmed on November 30 that production quotas would remain unchanged at least until the end of 2026, signaling a reluctance to increase supply and risk a price collapse. As a result, the cumulative influence of these factors has shifted the market balance towards oversupply. Prices remain low while market participants assess the prospects of a possible peace agreement and further steps by OPEC+ in response to changing conditions.
An additional indicator of oversupply was Saudi Arabia's decision to reduce the official selling price of Arab Light crude for Asian customers to the lowest level in the past five years. This move is aimed at strengthening Saudi competitiveness in the Asian market; however, maintaining limited OPEC+ production somewhat offsets oversupply pressure, preventing prices from falling further.
Gas Market: Europe Enters Winter with Comfortable Stocks and Stable Prices
The European natural gas market approaches the peak heating season without significant turmoil. Thanks to timely fuel injection and a mild winter start, EU countries welcome December with record-high gas storage levels and relatively low prices, mitigating the risk of a repeat crisis like that of 2022. Key factors defining the current situation in the European gas market include:
- High UGS Filling Levels: According to industry monitoring, the average filling level of gas storage in the EU exceeds 85%, significantly ahead of typical figures for the beginning of winter. The accumulated reserves provide a reliable safety net in case of prolonged cold snaps or supply disruptions.
- Record LNG Imports: European consumers continue to actively purchase liquefied natural gas (LNG) on global markets. Easing demand for LNG in Asia has released additional volumes for Europe, partially compensating for the cessation of pipeline supplies from Russia. As a result, the influx of LNG remains high, helping to keep prices at moderate levels.
- Moderate Demand and Diversification: Mild weather at the beginning of winter and energy-saving measures are suppressing gas consumption growth. Simultaneously, the EU is diversifying supply sources, increasing gas imports from Norway, North Africa, and other regions, enhancing energy security and reducing dependence on Russian resources.
- Price Stabilization: Wholesale gas prices are now several times lower than extreme peaks of the previous year. The Dutch TTF index is holding at around €28–30 per MWh. High storage levels and market balancing have allowed the avoidance of new price surges even amid a sharp reduction in gas imports from Russia.
Thus, Europe enters winter with a significant buffer in the gas market. Even in the event of colder weather, the accumulated reserves and flexible LNG supply chains can mitigate potential shocks. However, the long-term situation will depend on weather conditions and global demand trends—especially if Asia’s energy needs begin to rise again amid economic recovery.
Russian Market: Fuel Deficits and Extension of Export Restrictions
In autumn 2025, Russia faced a worsening issue of gasoline and diesel fuel shortages in the domestic market due to the convergence of several factors. A rise in seasonal demand (the harvesting campaign heightened fuel consumption) coincided with reduced supply from refineries (several plants cut output due to unscheduled repairs and drone attacks on fuel infrastructure). In various regions, supply disruptions for gasoline emerged, prompting the government to intervene promptly to stabilize the situation. The authorities implemented emergency measures that are still in effect:
- Ban on Gasoline Exports: The Russian government imposed a temporary, complete ban on the export of automotive gasoline by all producers and traders (except for supplies under intergovernmental agreements) as early as late August. Initially, this measure was set until October but has since been extended at least until December 31, 2025, due to persisting tension in the domestic fuel market.
- Limitation on Diesel Exports: Concurrently, the export of diesel fuel by independent traders has been banned until year-end. Oil companies owning their refineries are allowed limited diesel fuel exports to avoid halting refining operations. This partial ban aims to ensure adequate supplies of petroleum products domestically and prevent a recurrence of shortages.
According to statements from relevant officials, the fuel crisis that emerged in autumn is local and temporary. Reserve stocks were mobilized to overcome the crisis, and refining is gradually recovering after unscheduled downtime. By the start of winter, the situation has somewhat stabilized: wholesale prices for gasoline and diesel have receded from the peaks of September (including a further 5–7% drop in early December compared to the previous week). While fuel in the domestic market still costs more than a year ago, the government’s priority is to fully meet the country's needs and prevent a new price surge. If necessary, strict export restrictions may be extended into 2026 should stability require it.
Sanctions and Politics: Escalation of Western Pressure Amid Attempts at Dialogue
Western countries continue to tighten their policy towards the Russian FES, showing no readiness to ease sanctions. On December 4, EU leaders finalised a plan for a complete and indefinite refusal to import Russian pipeline gas by the end of 2026 (with the cessation of purchases of Russian LNG by 2027) as part of a new sanctions package. This move is aimed at depriving Moscow of a substantial portion of its export revenues in the medium term. Traditionally, dependent countries such as Hungary and Slovakia opposed the initiative, but their objections could not block the overall EU decision.
Simultaneously, the United States is escalating its own pressure. The Biden administration has adopted a hardline stance against countries cooperating with Russia in the energy sector. In particular, Washington imposed increased tariffs of 25% on a range of Indian goods in 2025, partly in response to New Delhi's purchases of Russian oil, and signalled a review of sanctions relief concerning Venezuela. These steps increase uncertainty around future supplies of Venezuelan oil to the global market.
Meanwhile, direct talks between Moscow and Washington aimed at ending the conflict have not resulted in significant progress—the consultations in Moscow involving U.S. emissaries concluded without breakthroughs. Combat operations in Ukraine continue, and all previously imposed restrictions on the export of Russian energy resources remain in place. Western energy companies still avoid new investments in Russia. Thus, geopolitical tensions surrounding energy remain, adding long-term risks and uncertainties to the market.
Asia: India and China Strengthen Energy Security
The largest developing economies in Asia—India and China—continue to focus on ensuring their energy security, balancing the benefits of cheap imports against external pressure. Countries in the region actively exploit opportunities to purchase energy resources on favorable terms while simultaneously developing domestic projects and international cooperation. The current situation in these two key countries is as follows:
- India: Under Western pressure, New Delhi temporarily reduced its purchases of Russian oil in late autumn; however, India remains one of Moscow's primary clients. Indian refineries continue to process discounted Urals crude, meeting domestic fuel demands and directing surpluses of petroleum products for export. The state visit of President Vladimir Putin to India on December 4–5 emphasized the close ties between the two countries. At the summit on December 5 in New Delhi, both parties discussed and highly praised extensive cooperation in the energy sector, signing an "important package" of documents aimed at further deepening partnership. The joint statement reaffirmed Russia's readiness to continue ensuring uninterrupted fuel supplies for India's rapidly growing economy and to expand cooperation in the areas of oil, gas, petrochemicals, coal generation, and nuclear power. Furthermore, Russia aims to increase imports of Indian goods to balance trade despite US sanctions pressure (including high tariffs on Indian exports linked to cooperation with Russia in the oil sector).
- China: Despite its economic slowdown, Beijing remains a key player in the global energy market. Chinese companies are diversifying import channels: new long-term contracts for liquefied natural gas purchases (including with Qatar and the USA) are signed, pipeline gas supplies from Central Asia are expanding, and investments in overseas oil and gas production are increasing. Simultaneously, China is gradually increasing its own hydrocarbon production, though this is currently insufficient to cover domestic demand entirely. The country also continues large coal purchases, aiming to secure its energy system during the transition period. Both India and China are actively investing in developing renewable energy, yet are not inclined to abandon traditional sources—oil, gas, and coal—which still make up the foundation of their energy balance in the coming years.
Renewable Energy: Record Investments Supported by Governments
The global transition to clean energy continues to accelerate, setting new records for investment and capacity additions. According to the International Energy Agency (IEA), global investments in renewable sources surpassed $2 trillion in 2025—more than double the total investments in the oil and gas sector for that same period. The main flow of capital is directed towards the construction of solar and wind power plants, as well as related infrastructure—high-voltage grids and energy storage systems. At the COP30 climate summit, world leaders reaffirmed their commitment to accelerating greenhouse gas emissions reductions and significantly increasing renewable energy capacity by 2030. A comprehensive set of initiatives has been proposed to achieve these goals:
- Accelerating Permitting Procedures: To shorten the processing times and simplify the issuance of permits for the construction of renewable energy facilities, modernizing grids and implementing other low-carbon projects.
- Expanding Government Support: To introduce additional incentives for "green" energy—special tariffs, tax benefits, subsidies, and government guarantees—to attract more investments and reduce risks for businesses.
- Financing the Transition in Developing Countries: To increase international financial assistance volumes for emerging market economies to accelerate renewable energy adoption where domestic resources are insufficient. Targeted funds are being created to cheapen "green" projects in the most vulnerable regions.
The rapid growth of renewable energy is already leading to noticeable changes in the global energy balance. According to analytical centers, non-carbon sources (renewables together with nuclear generation) now account for over 40% of global electricity generation, and this share is steadily increasing. Experts note that although short-term fluctuations are possible due to weather factors or spikes in consumption, the long-term trend is clear: clean energy is gradually displacing fossil fuels, ushering in a new low-carbon era.
Coal: High Demand Supports the Market, but Peak Has Been Reached
Despite efforts to decarbonize, the global coal market in 2025 remains close to record levels. Global coal consumption is maintained at historically high levels—around 8.8–8.9 billion tons annually, slightly exceeding the previous year's figures. Demand continues to grow in developing Asian economies (primarily in India and Southeast Asian countries), compensating for reductions in coal usage in Europe and North America. According to the IEA, global coal consumption even saw a slight decline in the first half of 2025 due to increased electricity generation from renewables and mild weather; however, a slight increase (~1%) is expected by year-end. Thus, 2025 will mark the third consecutive year with near-record coal burning levels.
Coal production is also increasing—especially in China and India, which are raising domestic production to reduce import dependency. Prices for thermal coal remain stable overall, as high Asian demand maintains market balance. Nevertheless, analysts believe that global coal demand has reached a plateau and will gradually decline in the coming years as renewable energy development accelerates and climate policies tighten.
