Oil refining capacity in Europe and the U.S. will decline over the next decade, while it will continue to grow in the Middle East, Africa, and Asia, according to forecasts by S&P Global Energy experts.
Western governments are urging companies to expand refinery capacity to ensure uninterrupted supplies of critical resources during future crises, but investors are reluctant to fund new projects, which will create problems in the future—both in Europe and North America, the Financial Times reports.
This year, refineries in the U.S. and Europe are operating near full capacity as the industry struggles to cope with shortages caused by the war in the Middle East, and they are generating high profits.
According to a forecast by S&P Global Energy, European refinery capacity will decline by 20% over the next ten years through 2035, to a level slightly above 9 million barrels per day (bpd). Last year, facilities with a combined refining capacity of about 500,000 b/d were shut down in Europe, and the United Kingdom, for example, lost two of its six refineries.
S&P Global Energy also expects U.S. capacity to decline by 7% over this period, to 16.7 million bpd.
The energy crisis caused by the war in the Middle East has not altered the industry’s trajectory, notes Daniel Evans, who is responsible for the oil refining market at S&P Global.
“Recent supply disruptions have forced a reassessment of the strategic importance of the refining industry in the West. But does this change the long-term fundamentals? I would say most likely not,” he noted.
Unlike in North America and Europe, companies in China, the Middle East, India, and Africa have built large, new, and highly competitive refineries.
The British newspaper Metro has named Sofia the most underrated capital in Europe, highlighting the city’s combination of relatively affordable prices, historical heritage, modern cultural life, and proximity to natural attractions.
According to the British publication, the Bulgarian capital remains significantly less popular among mass tourists than traditional destinations in Western and Southern Europe, despite its potential for short city breaks.
Metro cites the British market as one example. In 2025, approximately 343,000 travelers from the United Kingdom visited Bulgaria, whereas Spain welcomes around 18 million British tourists annually. Thus, even with growing interest, the gap between Bulgaria and one of Europe’s largest tourist destinations remains vast.
At the same time, tourism in Sofia itself is growing. According to the city’s tourism authorities, the capital welcomed more than 1 million tourists from January through September 2025, and the number of arrivals increased by approximately 10% year-over-year. Foreigners accounted for about 63% of visitors.
Metro highlights Sofia’s historic center as one of its main attractions, where monuments from different eras are concentrated within a small area.
St. Alexander Nevsky Cathedral remains one of the city’s main attractions. The British publication also draws attention to the archaeological complex of ancient Serdica, a significant portion of which can be seen right in the center of modern Sofia.
The city’s proximity to Vitosha Mountain is cited as a distinct advantage. As a result, a trip to Sofia allows visitors to combine exploring the capital with hiking trails and outdoor recreation without having to travel long distances to another region of the country.
British journalists also highlight the capital’s burgeoning cultural scene. Among the events mentioned is the A to JazZ music festival, and among the cultural venues are the Sofia City Art Gallery and other museums in the city.
Another factor contributing to the city’s appeal is the relatively low cost of food, public transportation, and entertainment compared to other European capitals. Metro considers Sofia’s affordability to be one of its advantages amid rising travel costs to the most-visited cities in Western Europe.
Overall, Bulgaria welcomed approximately 13.6 million foreign visitors in 2025, a 2.7% increase from the previous year, according to data from the country’s National Statistical Institute. More than 9.5 million tourists were registered at lodging facilities, a 5.8% increase over the year.
Thus, the British Metro’s focus on Sofia aligns with a broader trend of growing interest in Bulgaria as a destination in its own right for city tourism, rather than merely as a country of summer resorts and winter getaways.
Azerbaijan intends to increase electricity exports to neighboring countries and enter the European energy market, said the country’s president, Ilham Aliyev.
“By expanding our export capabilities to neighboring countries, we will also enter the European market. After all, we have already entered the European market with our oil and gas, but we want to enter it with electricity as well,” Aliyev said in an interview with the Azerbaijani state television channel AzTV.
According to him, the only route for supplying electricity to Europe currently runs through Georgia and Turkey, but Azerbaijan intends to expand the number of export routes. In this regard, a feasibility study for the Black Sea Energy project has already been prepared.
In addition, in November 2024, as part of COP29, Azerbaijan, Kazakhstan, and Uzbekistan signed an agreement to lay an electrical cable along the bottom of the Caspian Sea.
“Azerbaijan will establish itself as a country that generates, receives, transmits, and exports electricity,” Aliyev said.
He also noted that the capacity of solar power plants in the Nakhchivan Autonomous Republic (NAR) could reach 500 MW, and up to 1 GW in the future.
“The main issue here is export capacity. To achieve this, of course, negotiations must be held with the relevant authorities in the respective countries, and these are already underway,” the president said.
At the same time, Aliyev noted that the existing power transmission lines from the NAR to Iran and Turkey have limited capacity, which needs to be increased.
“That is, for exporting 500 megawatts—or even 1,000 megawatts—of electricity, there are currently two routes: one to Turkey and the other to Iran. But in the future, this could also include Europe,” he said.
The head of state added that Azerbaijan’s plans to export electricity are in line with the interests of the countries “surrounding us.”
“It’s just that coordination efforts here must be carried out properly, at the necessary level, and negotiations must be accelerated. I can say that negotiations on this matter are currently underway with both Turkey and Iran. It’s too early to say anything for sure,” the president said.
Only eight of the 29 European countries that have a national minimum wage raised it in their national currency between January and July 2026, according to Eurostat data.
The largest increase over the six-month period was recorded in North Macedonia—6.9%.
Next were Romania and Estonia—both at 6.8%—followed by Belgium at 5.8%, Greece at 4.5%, Luxembourg at 2.5%, France at 2.4%, and the Netherlands at 1.9%.
In the remaining 21 countries, the minimum wage in national currency remained unchanged between January 1 and July 1. This group includes, in particular, Serbia, Croatia, Slovenia, Poland, Germany, Spain, Portugal, Bulgaria, Hungary, and Ukraine.
At the same time, the absence of an increase in the nominal minimum wage effectively means a decline in its purchasing power in countries where consumer prices continued to rise during this period.
Eurostat publishes comparative data on minimum wages twice a year—as of January 1 and July 1. Changes that occur between these dates are reflected in the next semi-annual update of the statistics.
As of July 1, 2026, the minimum wage among EU countries ranged from 620 euros in Bulgaria to 2,771 euros in Luxembourg. When candidate countries are included, the lowest figure was recorded in Ukraine—169 euros.
According to Interfax-Ukraine, the relative level of gas reserves in European storage facilities has reached its lowest value on this date in recorded history.
Previously, the all-time low for storage levels at this time of year was recorded in 2021 (the pandemic impacted the industry’s capacity). However, since the start of the injection season, the 2026 trend has steadily been closing the gap with the previous record low.
The average level of gas reserves in Europe’s underground storage facilities reached 57.11% at the end of the gas day on August 1, according to data from Gas Infrastructure Europe (GIE), the association of European gas infrastructure operators. The reserve level on the same date in 2021 was slightly higher—57.28%. A day earlier, the figures were different: as of July 31, 2026, the level stood at 56.88% (higher), while as of July 31, 2021, it was 56.83% (lower).
Natural gas storage levels in Europe are a key indicator for the global gas market. The total capacity of the EU’s storage system is 109 billion cubic meters of active gas. Collectively, Europe has become the largest importer in the global LNG market. Gas Infrastructure Europe brings together operators active in the transportation and storage of natural gas, as well as LNG. The statistical database covers the operation of underground natural gas storage infrastructure since 2011, and the receipt and regasification of LNG since 2012. Gas days in the European gas industry are counted starting at 6:00 a.m. Central European Time (CET).
Renewable sources are expected to contribute to the EU’s energy balance. Since the beginning of August 2026, wind power in Europe has been meeting an average of 10% of electricity demand, according to the WindEurope association. A year ago, in August 2025, the contribution of wind power plants stood at 14%.
Europe is also actively importing liquefied natural gas (LNG). However, in August 2026, gas imports from abroad are down 7% compared to last year’s level. LNG imports in August 2026 may drop to 6.9 million metric tons.
The spot price for “next-day” delivery at the benchmark European TTF hub closed at $696 per 1,000 cubic meters on Friday, up from an average of $626 in July.
Zurich and Madrid posted the highest growth rates for luxury residential real estate prices among European cities in the first quarter of 2026, according to the international consulting firm Knight Frank.
In both cities, luxury housing prices rose by 4.8% compared to the first quarter of last year. Zurich ranked tenth in the global ranking, while Madrid ranked eleventh.
Prices rose by 4.2% in Geneva, 3.4% in Lisbon, 3.2% in Frankfurt, and 2.9% in Berlin.
Prestige real estate prices rose by 2.5% in Dublin, 2.3% in Monaco, 1.5% in Paris, 1% in Bucharest, and 0.3% in Vienna.
Price declines were recorded in Stockholm (0.7%), Milan (0.9%), and London (4%).
Knight Frank attributes the resilience of Switzerland’s markets to capital inflows, a relatively stable tax environment, and demand from affluent international buyers. Growth in Madrid and Lisbon is driven by comparatively attractive prices, the climate, and strong interest from foreign investors.
Over a five-year period, Milan emerged as the European leader, with prices for premium housing rising by 36.2%. It is followed by Madrid, with growth of approximately 29.7%, and Zurich, at 27.5%.
London was the only one of the tracked European markets where prices fell over the five-year period—by approximately 5%. Knight Frank attributes this to high transaction taxes, the abolition of a special tax regime for non-residents, and higher borrowing costs.
The European portion of the index includes Berlin, Bucharest, Dublin, Frankfurt, Geneva, Lisbon, London, Madrid, Milan, Monaco, Paris, Stockholm, Vienna, and Zurich.
Kyiv and other Ukrainian cities are not included in this study.
