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.
The Goodwood Festival of Speed happened this weekend, and Ford’s electric SuperTruck managed to beat every other vehicle, gas or electric, to the top of the hill.
The Goodwood Festival of Speed is a yearly event on the grounds of Goodwood House, a historic estate in West Sussex, England. The event started in 1993, and has become one of the largest motorsports festivals in the world.
Many companies attend Goodwood to debut new models, and enthusiasts or race teams will show off rare or customized vehicles or race unique cars.
One of the central features of the event is the Goodwood hillclimb, a short one-way race up a small hill on the property. The track is only 1.17mi/1.89km long, with a 304ft/92.7m uphill climb. It’s not a particularly taxing event – merely a fun way to show off some classic or unique racing vehicles.
Many of these cars came just to show off, to do a demonstration run up the hill and join the company of the world’s most exotic hypercars.
But some cars show up for the glory, and join “the shootout,” the sprint up the hill for the best time.
And Ford didn’t come to show off, it came to win. And in order to win, it brought…. a truck.
The F-150 “SuperTruck” / Source: Ford
Ford’s SuperTruck is a one-off, 1,400+ horsepower prototype electric vehicle, supposedly based on the F-150 Lightning, but in fact bearing almost no similarity or even resemblance.
It’s been festooned with aerodynamic elements all about, lowered, equipped with race tires, and power output has been boosted to the aforementioned 1,400hp. It was driven by Romain Dumas, who Ford have been using since 2022 to drive their electric prototypes.
For the purposes of a hillclimb, perhaps the most important aspect is the Ford’s electric drive. Hillclimbs are a popular form of racing in Britain, and often consist of a short sprint up a small hill, showcasing acceleration and nimbleness more than anything.
Electric cars do well in this sort of racing due to their instant low-end torque, being able to jump off the line faster than the gas competition. They also tend to have plenty of torque, which helps with carrying them up the hills involved.
EVs do well on longer hillclimbs too, because as races reach higher and higher altitudes, gas cars suffer from reduced power due to less oxygen being available for combustion. EVs don’t suffer from this, so they tend to do well at, say, Pike’s Peak hillclimb – which, incidentally, Ford also brought its SuperTruck to, and also beat everybody at.
This year was not the first time Ford has brought a ridiculous electric chonker to Goodwood. Last year, it brought the SuperVan, which has a similar powertrain to the SuperTruck, and also beat everybody.
The SuperVan’s main competition last year was Subaru’s 670hp “Project Midnight” WRX, piloted by Scott Speed, who Dumas handily defeated by over two seconds, 43.98 to 46.07. And this year, the SuperTruck’s main competition was… the same Subaru, piloted by Speed, who Dumas handily defeated by just under two seconds, 43.23 to 45.03.
Ford did not, however, set an all-time record with the SuperTruck, in fact coming in fifth on the list of fastest runs ever. In front of it are two gas cars and two electric – the gas-powered Gould GR51, a tiny open-wheel race car, with a 42.90; an F1 car driven by Nick Heidfeld that set a 41.6 in 1999; the electric VW ID.R, also piloted by Dumas with a 39.90 (which broke Heidfeld’s 20-year record); and the all-time record holder the electric McMurtry Spierling “fan car,” with a mind-blowing 39.08 in 2019.
You’ll notice something similar about all of these – they’re all small racecars that are actually built for speed, whereas the truck is… a big truck. And yet, Ford still managed to beat every single challenger this year, with its big honker of an EV, because EVs are just better.
Watch the run in full below, starting at 9:34. Blink and you’ll miss it.
And now, if Ford continues its pattern, we’re looking forward to seeing the Super Mustang Mach-E at Goodwood next year, which did well this year at a tough Pike’s Peak, getting first in its class and second overall, likely due to inclement conditions that limited running to the lower portion of the course, limiting the EV’s high-altitude advantages.
Given the Super Mustang is a real racecar, and not a chonky truck, it might even give VW’s ID.R time a run for its money (but, frankly, really has no shot at the overall record, because the Spierling’s “fans” give it an absurdly unbeatable amount of downforce).
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GM is preparing to begin converting production lines at its battery plant in Tennessee later this year for low-cost LFP EV batteries. GM’s joint venture, Ultium Cells, announced additional upgrades at the facility on Monday as it prepares for a new era.
GM will build low-cost LFP EV batteries in the US
After beating out Ford and Hyundai last year to become America’s second-best EV seller, GM is widening its lead in 2025.
Ultium Cells, GM’s joint venture with LG Energy Solution, announced plans to upgrade its Tennessee battery plant on Monday as it prepares to introduce lower-cost lithium-iron-phosphate (LFP) battery cells.
The upgrades build on the $2.3 billion investment announced in April 2021 to convert the facility into a key EV and battery hub. The company initially said the Tennessee plant was “at the heart of GM’s EV strategy,” but that was also when GM was still committed to an all-electric future.
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GM will begin converting production lines to accommodate the lower-cost LFP batteries at the facility later this year. By late 2027, the company expects to start commercial production.
Ultium Cells Spring Hill, Tennessee plant (Source: Ultium Cells)
With LFP batteries, GM said it’s “targeting significant battery pack cost savings compared to today’s high-nickel battery pack while increasing consumer EV choice.”
The Spring Hill, Tennessee, plant currently employs around 1,300 employees. With the ability to produce multiple chemistries, GM said the facility will “guide the next phase of” its battery strategy.
2025 Chevy Equinox EV LT (Source: GM)
After choosing Spring Hill for its LFP batteries, the next step, according to GM, is finding a home for lithium manganese-rich batteries. GM recently announced plans to become the first company to produce LMR prismatic battery cells at commercial scale.
GM plans to build a “next-gen affordable EV) in Kansas (Source: GM)
Meanwhile, GM’s Warren, Ohio, plant will continue producing NCM batteries, which it says have helped it unlock over 300 miles of range.
Electrek’s Take
GM’s electric vehicle sales more than doubled in the second quarter, led by the hot-selling Chevy Equinox EV. The company sold nearly 46,300 EVs in Q2, up 11% from last year.
Chevy is currently the fastest-growing EV brand in the US, while Cadillac claims to have already achieved “EV leader” status in the luxury segment this year. However, that does not include Tesla.
Even GMC is building momentum with the new Sierra EV, seeing strong initial demand, and Hummer EV sales are picking up.
With new, lower-cost batteries on the way, GM aims to continue narrowing the gap with Tesla. GM offers 13 electric vehicles, covering nearly every segment of the market. It already calls the Chevy Equinox EV “America’s most affordable +315 range EV,” but GM has even lower-priced models on the way, including the next-gen Chevy Bolt EV.
Ready to test drive one for yourself? You can use our links below to find Chevy, Cadillac, and GMC EVs in your area.
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Elon Musk is teasing Tesla doing “the most epic demo ever”, but we heard him claim that before and nothing came of it.
On X last night, Tesla CEO Elon Musk said that he was shown something at the Tesla Design Studio and that the company will hold the ” most epic demo ever by the end of the year”:
Just left the Tesla Design Studio. Most epic demo ever by the end of the year. Ever.
I used to get excited about Musk making statements like that, but I was burned one too many times.
In 2016, Musk said this:
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Our goal is, and I feel pretty good about this goal, that we’ll be able to do a demonstration drive of full autonomy all the way from LA to New York … by the end of next year.
The end of 2017 came and went without this demonstration and now in 2025, Tesla can’t do it either.
However, since Musk referenced being at Tesla’s Design Studio, where it mostly works on car designs and advanced features, people are speculating that it’s something else.
A possibility is the next-gen Tesla Roadster, as Musk has made similar comments about it in the past, but they were again about demonstrations that never happened.
Shortly after the unveiling of the next-gen Roadster in 2017, Musk talked about adding cold air thruster to the supercar to allow it to have unprecedented racing performance and even possibly hover over the ground.
5 years later, it never happened, and the Roadster was initially supposed to come to market in 2020. It has never launched.
In 2024, Musk claimed that Tesla would unveil and demo the new Roadster by the end of the year:
It also didn’t happen, and the CEO instead said that Tesla was “close to finalizing design” at the end of 2025.
Electrek’s Take
The comment about the demo makes me think of the Roadster, but it could be something else. Maybe a bot, but I’m not sure out of the design studio.
Either way, for the reasons listed above, it’s hard to get too excited.
You can’t just believe what Musk says these days. Historically, he has been wrong or lied too often, especially about upcoming demonstrations like this new comment.
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