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OPEC Secretary General Mohammed Sanusi Barkindo (L), Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman (C) and Russian Energy Minister Alexander Novak (R) attend an Opec-JMMC meeting in the UAE capital Abu Dhabi on September 12, 2019.
KARIM SAHIB | AFP via Getty Images

LONDON — Oil producer group OPEC has been plunged into crisis, with bitter infighting between Saudi Arabia and the United Arab Emirates raising questions about the future of the energy alliance.

OPEC and non-OPEC partners, a group of some of the world’s most powerful oil producers, abruptly abandoned plans to reconvene on Monday after last week’s meetings unexpectedly failed to broker a deal on oil production policy. The group did not set a new date to resume talks.

It means no agreement has been reached on a possible increase in crude production beyond the end of July, leaving oil markets in a state of limbo just as global fuel demand recovers from the ongoing coronavirus pandemic.

“OPEC+ has been thrown its most serious crisis since last year’s ill-fated price war between Saudi Arabia and Russia,” Helima Croft, head of global commodity strategy at RBC Capital Markets, said in a research note.

“Back-channel talks reportedly are continuing, but questions about UAE’s commitment to remaining in OPEC will likely grow in the coming days.”

The UAE-Saudi dispute appeared to be about more than oil policy, Croft said, with Abu Dhabi “seemingly intent on stepping outside Saudi Arabia’s shadow and charting its own course in global affairs.”

The pandemic held them together and now the post pandemic is breaking them apart.
John Kilduff
Founding partner at Again Capital

OPEC+, which is dominated by Middle East crude producers, agreed to implement massive crude production cuts in 2020 in an effort to support oil prices when the coronavirus pandemic coincided with a historic fuel demand shock.

Led by Saudi Arabia, a close ally of the UAE, OPEC+ has met monthly to decide on production policy.

OPEC solidarity ‘dissolved’

The disarray comes after OPEC+ on Friday voted on a proposal to increase oil production by roughly 2 million barrels per day between August and the end of the year in 400,000 barrels per day monthly installments. It also proposed to extend the remaining output cuts to the end of 2022.

The plans were rejected by the UAE, however, which wants a higher baseline to its quota to allow for more domestic production.

“No agreement was reached and as we stand now the OPEC+ alliance, if it is still the right word to describe the group, will produce at the July level for the rest of the year,” Tamas Varga, oil analyst at PVM Oil Associates, said in a research note.

“The [non-] outcome of the meeting re-writes the supply-demand landscape for the near and potentially for the distant future,” he added.

The rare public stand-off between the UAE and Saudi Arabia saw energy ministers from both countries engaging in a media blitz over the weekend to outline their respective positions.

“For us, it wasn’t a good deal,” UAE Minister of Energy and Infrastructure Suhail Al Mazrouei told CNBC’s Hadley Gamble on Sunday. He added that while the country was willing to support a short-term increase in oil supply, it wants better terms through 2022.

Speaking to the Saudi-owned Al Arabiya television channel on Sunday, Saudi Arabia’s Energy Minister Abdulaziz bin Salman called for “compromise and rationality” in order to reach a deal on Monday, Reuters reported.

Separately, a White House spokesperson reportedly said on Monday that President Joe Biden’s administration was pushing for a “compromise solution.” The U.S. is not a member of OPEC (which stands for the Organization of Petroleum Exporting Countries) but it has been closely monitoring the latest round of talks given their potential impact on crude markets into next year.

The OPEC logo pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria.
Ramzi Boudina | Reuters

Responding to the news that the OPEC+ meeting had been adjourned without a deal on Monday, John Kilduff, a founding partner at Again Capital, said: “The Opec solidarity dissolved today.”

“The pandemic held them together and now the post pandemic is breaking them apart. The UAE is sticking to their guns on wanting their baseline raised. They want to be able to produce more,” he told CNBC via email.

“Now the fun starts as to who breaks away,” Kilduff said, noting the UAE could be the “first domino” to fall.

OPEC was not immediately available to respond to a request for comment when contacted by CNBC on Tuesday.

Oil prices climb to multi-year highs

The news pushed oil prices to their highest level in nearly three years. International benchmark Brent crude futures traded at $77.65 a barrel on Tuesday morning, up 0.6% for the session, while U.S. West Texas Intermediate futures stood at $76.62, around 2% higher.

Oil prices rallied more than 45% in the first half of the year, supported by the rollout of Covid-19 vaccines, a gradual easing of lockdown measures and massive production cuts from OPEC+.

Samuel Burman, assistant commodities economist at Capital Economics, said OPEC producers were likely to increase oil production above quota next month as member states “seek to take advantage” of higher oil prices.

In addition to a rift between the UAE and Saudi Arabia, he said Abu Dhabi was probably “somewhat irritated” that Russia hadn’t been complying with OPEC’s production quotas.

Burman said non-OPEC leader Russia hadn’t introduced any compensatory cuts at all and was currently overproducing by around 100,000 barrels per day. “We think that this spat involving the UAE increases the chances that the entire agreement falls apart which would clearly pose a downside risk to our near-term price forecasts.”

— CNBC’s Patti Domm contributed to this report.

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UAW tells Stellantis workers to prepare for a fight, and vote for strike

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UAW tells Stellantis workers to prepare for a fight, and vote for strike

The UAW union’s Stellantis Council met yesterday to discuss the beleaguered carmaker’s “ongoing failure” to honor the agreement that ended the 2023 labor strike, and their latest union memo doesn’t pull many punches.

It’s not a great time to be Stellantis. Its dealers are suing leadership and threatening to oust the company’s controversial CEO, Carlos Tavares, as sales continue to crater in North America, it can’t move its new, high-profile electric Fiat, and it’s first luxury electric Jeep isn’t ready. And now, things are about to get bad.

In an email sent out by the UAW earlier today (received at 4:55PM CST), UAW President Shawn Fain wrote, “For years, the company picked us off plant-by-plant and we lacked the will and the means to fight back. Today is different. Because we stood together and demanded the right to strike over job security—product commitment—we have the tools to fight back and win … We unanimously recommend to the membership that every UAW worker at Stellantis prepare for a fight, and we all get ready to vote YES to authorize a strike at Stellantis.”

The dispute seems to stem from Stellantis’ inability to commit to new product (and continued employment) at its UAW-run plants and other failings to meet its strike-ending obligations. This, despite a €3 billion stock buyback executed in late 2023.

I’ve included the memo, in its entirety, below. Take a look for yourself, and let us know what you think of the UAW’s call for action in the comments.

UAW memo

SOURCE: UAW, via email.

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Kia EV9 GT caught with an active spoiler for the first time [Video]

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Kia EV9 GT caught with an active spoiler for the first time [Video]

Kia promises the new EV9 GT will have “enormous power,” but that’s not all. For the first time, the Kia EV9 GT was caught with an active spoiler, giving us a sneak peek at potential new upgrades.

The brand’s first three-row electric SUV is already making its presence known in the US, helping push Kia to back-to-back record sales months. Meanwhile, a more powerful, sporty variant is on the way.

Kia confirmed the EV9 GT will top off the electric SUV’s lineup in April. Packing “enormous power,” the high-performance GT model can accelerate from 0 to 62 mph (0 to 100 km/h) in 4 secs.

With a “high-output” dual-motor (AWD) system, the EV9 GT can quickly pick up speed despite weighing over 5,000 lbs.

Kia also equipped it with other high-performance features, such as a reinforced suspension and electronic braking system, for better control and stability.

We’ve already caught a glimpse of the performance electric SUV out testing, revealing aggressive new bumpers and wheels. Now, a new design feature has been spotted.

Kia-EV9-GT-active-spoiler
2024 Kia EV9 GT-Line (Source: Kia)

Kia EV9 GT could come with an active rear spoiler

The latest video from HealerTV shows the EV9 GT with what appears to be an active spoiler. As the reporter noted, it could be similar to the one spotted on the Genesis GV70 Magma.

Kia EV9 GT caught with an active rear spoiler

Tesla’s Model X also used to come with an active spoiler until it was dropped a few years back. Although the GT model was spotted with one, Kia could just be testing new features, so don’t get too excited yet.

Earlier this week, a video from HealerTV showed the front row of the EV9 GT, comparing it to the current GT-Line model.

Kia-EV9-GT-Line-interior
Kia EV9 GT-Line interior (Source: Kia)

Several differences can be immediately noticed, including a more aggressive, all-black design with a yellow stripe down the center of the seat.

Kia is set to launch the EV9 GT in early 2025. It will rival other performance SUVs like the Tesla Model X Plaid.

Although prices have yet to be confirmed, the GT model is expected to sit above the current GT-Line at $73,900. In comparison, Tesla’s Model X Plaid starts at $94,990 and can sprint from 0 to 60 mph in 2.5 secs.

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Chargeway and Consumer Reports team up to improve charging

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Chargeway and Consumer Reports team up to improve charging

Consumer Reports and EV charging app Chargeway are working together to give drivers a better way to rate public chargers, report uptime, and address maintenance issues.

The Chargeway app is best known for its use of numbers and colors to simplify the complexity of multiple charge ports and different charging speeds for new EV drivers. The app also enables Chargeway users to rate and review the public charging stations they visit – and now, those ratings can show up on Consumer Reports.

The technical collaboration with Chargeway is part of a larger effort called the EV Charging Community, which engages with a number of different EV advocacy groups including Plug In America, GreenLatinos, and Generation 180, and leverages the mobile app to rate public EV charging experiences based on various factors, with the findings reported back to industry stakeholders like EVSE manufacturers, CPOs, and utilities.

Be heard

“We are very excited to be partnering with Consumer Reports,” says Chargeway founder, Matt Teske. “From day one, Chargeway has focused on a driver first app design to provide easier EV charging experiences as well as transparency for what drivers can anticipate at (the) station they choose … we share Consumer Reports’ goal to give drivers a voice in the public EV charging reliability conversation. Now, instead of posting complaints on social media and feeling ignored, EV drivers can use the Chargeway mobile app to provide their feedback to the leading consumer advocacy organization.”

Consumer Reports says it’s already seen nearly a third of its 1,600 enrolled community members experience a problem with public charging, so it’s a real problem. “Charging stations are critical services, but when they’re out of order or barely functional, it wastes consumers’ valuable time,” explains Drew Toher, Consumer Reports’ sustainability campaign manager.

Consumer Reports points out that EV drivers who don’t use Chargeway can also enroll to be part of the community at this link.

Electrek’s Take

Chargeway founder Matt Teske is an old friend. He’s a good friend, too, so it’s great to see his top-shelf EV charging app starting to get some of the recognition it deserves. The CR tie-up and added visibility these ratings will give to industry stakeholders are only going to make things better for EV drivers everywhere.

That up there? That’s one of my early interview episodes of Quick Charge featuring a walkthrough of Chargeway+, another collab between Matt and Austin Energy. Enjoy!

SOURCE | IMAGES: Chargeway, Consumer Reports.

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