Prince Abdulaziz bin Salman Al-Saud, Minister of Energy of Saudi Arabia arrives for the 178th meeting of the Organization of Petroleum Exporting Countries (OPEC) in Vienna, Austria, on March 6, 2020.
Alex Halad | AFP | Getty Images
Disagreement within OPEC could trigger a more a volatile period for oil, with prices jumping on lack of new supply or sinking suddenly if member countries decide to release crude independently.
Oil prices initially surged to a six-year high on news that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, ended their meeting Monday with no action and no new meeting date. A proposed plan by OPEC, Russia and other allies to bring 400,000 barrels a day back to the market was disrupted by the United Arab Emirates’ objection to other aspects of the deal.
West Texas Intermediate crude futures for August traded as high as $76.98 Tuesday before falling back to settle down 2.4% at $74.53 per barrel. Many analysts had expected oil to rise on the discord among members of OPEC, and say prices could still climb despite the sell-off.
“It’s going to get worse before it gets better. I still think $85 to $90 per barrel should be the upper end,” said John Kilduff, partner with Again Capital. “You’ll see more oil produced. They’re not going to go crazy, but they’re not going to live within the current structures. Russia will lead the charge.”
“It could become a free for all,” he said.
Some analysts had already expected oil spikes into the $100 per barrel range over the course of the next year. The feuding between Saudi Arabia and the United Arab Emirates opens a new fissure in OPEC, which now means oil could also tank if members decide to open the spigots.
“Realistically, I don’t think anybody wants to go this way. I suspect cooler heads or rational thinking will prevail,” said Bart Melek, global head of commodity strategy at TD Securities. Melek said there are some wild cards for OPEC that could affect prices. A major one is whether the U.S. and Iran strike a deal on Iran’s nuclear programming, allowing it to return more than 1 million barrels a day back to the market.
Another risk is whether the variants of the Covid virus could affect the economy’s recovery and crimp demand for travel.
OPEC and its partners were able to agree to return 400,000 barrels a day to the market starting in August. But the UAE sought to also have its production baseline increased from 3.1 million barrels a day to 3.8 million barrels, and that was the sticking point with Saudi Arabia.
After three days of meetings, there was also a deadlock over whether the deal would include an extension of the the plan to the end of 2022, which was opposed by the UAE. Without an agreement, 5.8 million barrels a day, cut from production last year, will remain off the market even as demand rises.
“I think OPEC event risk is back. We had pretty smooth sailing this year, and now this was not priced at all,” said Helima Croft, global head of commodity strategy at RBC Capital Markets. “Once people start focusing on 5.8 million barrels off the market, I think they might get nervous. How they come back will be important.” The market will be affected much differently based on whether the oil trickles back or the producing countries flood the market with supply.
The friction between Saudi Arabia and the UAE, formerly strong OPEC allies, comes at a time when the market is increasingly in need of more supply. Analysts expect the world is short of upwards of 2 million barrels a day, based on current production levels and increasing demand. That means oil is being taken from storage, and there could be increasing pressure on prices as the economy rebounds and demand rises.
The U.S. is producing about 2 million barrels a day less than it did pre-Covid, and output has remained at a steady level even as prices rise. The U.S. industry has become more disciplined, due to demands from shareholders and lenders. Oil companies also face sustainability demands and pressure to reduce carbon.
But U.S. drillers do have capacity to increase drilling. “Certainly, $90 oil would encourage a lot of drilling in not only the Permian, but in the Bakken and Rockies,” Andy Lipow, president of Lipow Oil Associates said. “I think as prices creep up, one of the things [OPEC+ members] are worried about is a spike higher that would encourage lots of drilling in other parts of the world.”
Lipow said OPEC will also be careful about falling prices and the potential for even lower levels. “If prices fall $5 a barrel, they’ll come to an agreement to signal the market they’re not going to flood it with supplies,” he added.
It also comes as gasoline prices continue to rise and are nearly $1 per gallon higher than this time last year. The national average for unleaded was $3.13 per unleaded gasoline Tuesday, following a weekend where prices at the pump were the highest in seven years for the Fourth of July holiday, according to AAA. If crude prices continue to rise, so will gasoline prices.
“I think gasoline prices could remain above $3 a gallon for the balance of the summer,” said Lipow.
The White House Tuesday said there have been a number of high-level conversations with officials in Saudi Arabia, the UAE and other partners.
“If prices were rising, I think that would be more of a catalyst for the White House to get involved,” said Croft. “If you have a sell-off you may have people in the administration saying why do I need to be involved in this.”
Kilduff said he does not think the situation will last much longer. “I think we’re in the last innings of it right now. I’m targeting in mid-August, you’re going to start to see gasoline demand going down because kids are going back to school. Refiners will start to dial back,” he said.
Tesla uses frameless doors with electronic door handles. The button to open the doors first causes the window to lower slightly, allowing the door to open. Then, it electronically unlatches, enabling the door to be swung open.
There’s also a manual latch, but it has been known to be somewhat hard to locate for people who didn’t read the owner’s manual, which is most people.
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If there’s an electronic failure, especially after a crash, it can result in occupants having issues exiting the vehicle when they are in a state of panic.
Additionally, if a child is in the vehicle after a failure, it can be challenging for them to locate and use the manual release, which is what the NHTSA is now investigating.
Following the publicization of this long-standing issue this week, Tesla announced that it is redesigning its manual release.
Franz von Holzhausen, Tesla’s chief designer, said in an interview with Bloomberg that the automaker is going to combine the electronic and manual releases into one:
“The idea of combining the electronic one and the manual one together into one button, I think, makes a lot of sense. That’s something that we’re working on.”
The designer said that Tesla is already testing this in China.
It’s not a novel design. Toyota already has the same concept in some of its vehicles. The electronic button to release the door can also be pulled to activate the manual release, which works even if the car has no power.
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Get ready to see a lot more Hyundai vehicles on the road. The South Korean auto giant just revealed its most ambitious growth plan ever, packed with advanced new EVs and hybrids across nearly all segments. Hyundai is also launching its first midsize pickup and an extended-range vehicle (EREV) that promises to deliver over 600 miles (960 km) of range.
Hyundai bets on new EVs, hybrids, EREVs, and trucks
During its first CEO Investor Day held outside of Korea, Hyundai unveiled “its most ambitious growth strategy” in company history.
Hyundai is promising to lead the industry’s shift to electrification with a slate of new vehicles set to launch across nearly every powertrain and segment imaginable.
“In an industry facing unprecedented transformation, Hyundai is uniquely positioned to win,” José Muñoz, President and CEO of Hyundai Motor Company, said during the event held in New York on Thursday. Hyundai isn’t simply adapting, “We’re leading it,” Muñoz told attendees.
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Hyundai plans to sell 5.55 million vehicles globally by 2030, including 3.3 million “electrified” vehicles, or about 60% of total sales.
With 18 new hybrids, including the first under its luxury Genesis brand, Hyundai expects “significant growth” in North America, Europe, and Korea.
Hyundai said the new vehicles, including EVs and hybrids, will be custom-tailored for buyers in its biggest markets.
2026 Hyundai IONIQ 9 (Source: Hyundai)
Custom-tailored vehicles for the US, Europe, and China
In North America, Hyundai will launch its first midsize pickup by the end of the decade. Hyundai offers the Santa Cruz, which launched in 2021, but the company promises the new model is aimed at “the heart of the US market.”
Those in Europe will see the IONIQ 3, a smaller and more affordable little sibling to the IONIQ 5. It will feature a next-gen infotainment system, Hyundai said, specifically designed for drivers in Europe.
The Hyundai Concept THREE EV, a preview of the IONIQ 3 (Source: Hyundai)
Hyundai announced plans to introduce its first extended range electric vehicle (EREV). Set to arrive in 2027, Hyundai said the new EREV will deliver an “EV-like driving experience with more than 600 miles (960 km) of range” that will use an added gas-powered engine to extend range.
Unlike traditional EREVs, however, Hyundai will use in-house batteries, which it promises will deliver “full EV power performance with less than half the battery capacity.”
The Hyundai Elexio electric SUV (Source: Beijing Hyundai)
In China, Hyundai will take on BYD and other automakers, leading the shift to EVs, with its new Elexio electric SUV. The Elexio SUV is Hyundai’s first locally produced electric vehicle using tech and software from Chinese leaders.
Wait, there’s even more
We will also see seven new high-performance “N” models added to the lineup by 2030. Hyundai aims to sell 100,000 N-branded vehicles by the end of the decade. The new IONIQ 6 N “will introduce a new paradigm for high-performance EVs,” the company said, with advanced new features and tech.
The new Hyundai IONIQ 6 N Line (Source: Hyundai)
The luxury Genesis brand is celebrating its 10th anniversary with big growth plans over the next few years, including new EREVs, hybrids, and a flagship SUV.
The flagship Genesis electric SUV is expected to launch as the GV90, which we’ve seen out in public testing with ultra-luxury features, including coach doors.
The Genesis Neolun concept (Source: Hyundai Motor Group)
Hyundai announced plans to ramp up production at its Metaplant America (HMGMA) EV plant in Georgia. With a new $2.7 billion investment, the company is creating 3,000 more jobs in Georgia. By 2028, Hyundai plans to build 500,000 hybrid and EV models at the facility annually.
By 2030, Hyundai expects over 80% of vehicles sold in the US will be made domestically. Its supply chain sourcing in the US will also increase from 60% to 80%.
Globally, Hyundai plans to add 1.2 million units to its production capacity by the end of the decade, including in the US, South Korea, and India.
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Back in August of 2024, I wrote about buying an electric chainsaw for the first time. It was a Father’s Day present for my dad, who has several acres of property to manage and is reaching the point where even his dad strength isn’t enough to hand saw all day. I wasn’t quite sure what to expect from the current state of electric chainsaws, but I was excited to put the new machine to work. Fast forward a full year, and I’ve got an update: we’ve abused the heck out of it – and it’s still going strong!
Over the past 12 months, this Ego Power+ 18-inch 56-volt electric chainsaw has seen more wood than a mom-and-pop lumber mill. I’ve cut through your standard backyard trees, gnarly old branches, telephone poles, construction lumber, and plenty of 2x4s.
We’ve basically started treating it like a general-purpose tool. If anything is fiber-based and currently of a size that is larger than it should be, the standard response is “go grab the chainsaw…”.
And not just on nice sunny days either – this saw’s been dragged through rain, dust, and mud. And more than once it’s been used in situations that absolutely should have killed it: fully underwater.
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At my parents’ place, a good-sized tree had fallen into their lake after the last big storm and needed to be cleared out. We had been putting it off due to the size of the thing, but the water level was rising, and soon it was going to be swamped. One of the most recent times I went over to visit my parents, my dad and I decided it was time to finally tackle the job. Unfortunately, by then the water had risen to the point where the tree trunk was already half-submerged, creating a navigational hazard for all the weird little electric boats I’ve dropped in that lake.
We started by trying to just cut the exposed portion, and I figured we’d then put a long line on the UTV and see if we couldn’t just break the rest of it free. But that’s where my dad’s more hours on the saw than mine played a key role: knowing he could keep pushing it. My dad waded in with the chainsaw and absolutely went to town. He had that thing so deep in the water, cutting through the massive trunk that if it had been a gas-powered chainsaw, it would have literally needed a snorkel to keep running.
And yet, it worked. Not just worked – it powered through. We pulled it out, dried it off, and then it was on to the next job.
I didn’t capture the moments it went deeper, but that thing was water-breathing for a little while!
The battery life has stayed impressive, the power is still solid, and the chain hasn’t even needed a replacement yet (though I should probably give it a sharpening one of these days). I’ve lost count of how many logs this thing has ripped through, and it’s never let me down.
There is one minor downside worth mentioning: the chain tensioner has gotten a bit stiff. It used to adjust nice and easy, but now it takes a little more effort to tighten. It still works, but you’ve got to put a bit of muscle into it. That’s literally the only wear-and-tear issue I’ve noticed after a full year of borderline tool abuse.
I expected an electric chainsaw to be a convenient, eco-friendly option for light-duty work. What I didn’t expect was a rugged, waterproof (apparently), do-it-all beast that could handle nearly anything I threw at it.
So here’s the one-year verdict: I bought an electric chainsaw, I used it for everything I possibly could (and some things I probably shouldn’t have), and it still works like a champ. If you’re wondering whether an electric chainsaw can hold up over time – this one has more than proven itself.
And if I ever buy a second one, I’ll try to keep it out of the pond. No promises, though.
Author’s note: On reading through this again to proofread, it almost sounds like an ad, but I promise it’s not (those have big “Sponsored” labels on them and I generally steer clear of those). This is just a chainsaw I bought for my dad and we’ve been thrilled with it one year later.
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