Oil prices increased following Ukraine's drone attacks on Russian energy sites, raising concerns over Russian oil supply disruptions, while expectations of a US interest rate cut supported the outlook for global demand. The attacks targeted key Russian energy infrastructure, including a nuclear reactor and fuel export terminal, and coincided with signals from the US Federal Reserve of potential rate cuts, boosting market optimism.
Top oil executives and ministers gather in Houston for the CERAWeek conference, buoyed by stable oil prices and blockbuster mergers, while discussions shift from market-share battles to energy security issues amidst geopolitical turmoil. The conference will address rising demand for oil and gas alongside clean fuels, with a focus on LNG developments, U.S. climate policies, and the role of artificial intelligence in energy production. Climate concerns are reflected in sessions on carbon sequestration technology and hydrogen fuels, as the industry grapples with consumer willingness to pay for clean fuels and the ability to generate adequate returns on investment.
Renewable power capacity is expected to increase by a third this year, with solar PV accounting for two-thirds of the increase, according to the International Energy Agency. The world's total renewable electricity capacity is set to rise to 4,500 GW by next year, with global renewable capacity additions set to soar by 107 GW, the largest absolute increase ever, to more than 440 GW in 2023. The expansion is taking place across the world's major markets, with China set to account for almost 55% of global additions of renewable power capacity in both 2023 and 2024.
