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Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas.
Nick Oxford | Reuters

A panic-induced sell-off in the oil market triggered by virus concerns has thrown the commodity’s upward march into question — but energy experts at Goldman Sachs don’t appear to be rattled.

Fears over the surging delta coronavirus variant and a fresh supply boost agreement from OPEC+ sent oil prices tumbling down more than 7% as the trading week opened Monday.

The drop was the steepest since March, a rude awakening for oil bulls who’d been enjoying the commodities’ highest prices in 2½ years.

International benchmark Brent crude was trading at $68.42 a barrel at 2:15 p.m. in London on Tuesday, down just over 7% from its Friday close of $73.59 a barrel. 

Oil analysts were quick to stress the uncertain road ahead for demand as new waves of Covid-19 infections ― many among communities that have high vaccination rates ― threaten the recent months of economic recovery.

“The market is clearly unsettled about the demand outlook. And rightly so. The rise in delta variant cases is raising questions about the sustainability of demand,” Stephen Brennock, a senior analyst at PVM Oil Associates in London, wrote in a research note Tuesday entitled “Oil takes a beating.”

But analysts at Goldman Sachs led by Senior Commodity Strategist Damien Courvalin see the current setback as merely a speedbump, with little concrete reason for oil bulls to be worried.

Supply driving the bulls?

Oil balances globally are tighter than they were before, despite the agreement between OPEC and its allies over the weekend to cumulatively increase crude production by 400,000 barrels a day on a monthly basis beginning in August. 

The International Energy Agency estimated a 1.5 million barrel per day shortfall for the second half of this year compared to its demand predictions in the absence of an OPEC supply deal.

And Goldman predicts the impact from delta to be in the neighborhood of “a potential 1 mb/d  (million barrels per day) hit for only a couple months, and even less if vaccines prove effective at lowering hospitalizations in DMs (developing markets), the origin of most summer demand improvements,” as per its latest report. 

Goldman’s call is in line with its previously bullish stance, which saw it forecasting Brent hitting $80 per barrel in the second half of this year.

The optimistic recovery outlook, paired with what it sees as a “slower” production ramp-up than expected from OPEC and tighter supply, so far means that “our constructive view on oil prices remains intact.” But the immediate-term demand hit from delta fears triggered a swap in the lender’s quarterly forecasts: It now expects Brent to average $75 per barrel in the third quarter of this year and only reach $80 by the fourth quarter.

“Oil prices may continue to gyrate wildly in the coming weeks given the uncertainties of the Delta variant and the slow velocity of supply developments,” Goldman’s analysts wrote. 

Nonetheless, they continued, “we believe that the oil market repricing to a higher equilibrium is far from over, with the bullish impulse shifting from the demand to the supply side.” 

The China factor

A less talked-about factor in the future demand picture is the world’s biggest oil customer: China. The recovery of the planet’s second-largest economy is showing signs of losing momentum, which would throw a major wrench in the trajectory for crude.  

China’s crude imports were down 2% in May from the previous month and the lowest monthly volume since the year began, according to PVM Associates, falling to 9.77 million barrels per day. In July, they fell further to 9.55 million barrels per day, according to Refinitiv Oil Research. The country’s imports for the first half of 2021 were down 3% from the same period in 2020, and the first contraction of that level since 2013.

“China’s latest GDP data suggest the nation’s V-shaped economic rebound from Covid-19 is cooling,” PVM’s Brennock wrote. “More worryingly, recent customs data out of China is giving the market some mixed signals that are tilted to the bearish side.”

The confluence of uncertain demand due to the delta variant, cooling import levels from China and re-introduced supply from OPEC and its allies, known as OPEC+, suggest bearish signals to the market. But how long the uncertainty will last and whether national vaccine campaigns can offset the mutating virus will ultimately drive the demand picture. In the meantime, supply dynamics, particularly current inventory tightness, continues to give some fuel to the oil bulls.  

“Questions are being asked whether the recently announced increase in OPEC+ supply will overwhelm the recovery in demand,” Brennock wrote. “Currently, this seems unlikely, although the evidence from the world’s top oil importing nation appears to favour the bearish narrative.”

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This guy built a six-seater electric bike for $150, and it absolutely rips

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This guy built a six-seater electric bike for 0, and it absolutely rips

I’ve always enjoyed multi-seater electric bikes, which bring passenger-carrying utility to small-format, easy-to-produce vehicles. But I never thought I’d see the concept taken this far. At least not until I stumbled upon a six-seater electric bike that has me all kinds of jealous.

It’s no surprise where this custom e-bike originated. If you want to see the most creative and ingenious transportation solutions in the world, you have to head over to Asia.

The Chinese often get a lot of credit for some of the more wacky vehicles popping up on Alibaba, but India usually takes the cake with some of the coolest auto and motorcycle innovation on the planet. And that’s exactly where this impressive six-seater bike comes from, where it was hand-built by Ashhad Abdullah from Lohra in eastern India.

Abdullah seems to have caught my recent Awesomely Weird Alibaba Electric Vehicle of the Week entry for a three-seater electric bike and said “Hold my lassi.”

Flip-flops and no helmets, but at least he’s wearing a mask!

Instead of a three-seater, Abdullah doubled the capacity to six seats. His stretch-limousine electric bike looks like it wears a scooter fork on front complete with drum brake, off-road lighting kit, and even a motorcycle horn. The rear seems to hold a hub motor wheel in a swingarm supported by dual coilover shocks. There’s a battery box mounted just in front of the swingarm, though how much capacity he’s rocking seems to be a mystery.

Bridging the two ends of the bike is a bespoke ladder frame with six seats, six handlebars, and six pairs of foot pegs.

There’s no word on the turning radius, but we’d wager it’s somewhere around the width of the state of Bihar.

Abdullah created the custom-designed bike after climbing fuel prices made petrol-powered motorcycles less appealing. In total, he says the bike cost him around 12,000 INR (US $150) to build.

It gets a range of around 150 km (93 miles) and costs around 10 INR (US $0.12) to recharge.

I’m not sure if this is technically an e-bike, at least by electric bicycle standards. It certainly looks like a tandem-style bicycle setup with bicycle seats, but the lack of pedals means it would be classified more like an electric scooter or motorcycle.

But whatever you call it, the six-seater bike has received a warm reception around the world.

The novel creation went viral on Twitter after a video of it in action was reposted by Anand Mahindra, the chairman of Mahindra Group, one of the largest automakers in India (and similar in size to GM).

It’s unlikely we’d see an awesome ride like this in the West, where safety regulations and an unhealthy aversion to two wheels would likely make this six-seater dead on arrival.

I’ll admit that it’s hard for me to argue with the safety concerns, especially when seeing six helmet-less heads and a few bare feet as well.

There are some good alternatives available in the US, at least if you’re alright with just two-seater e-bikes. But with options like a $999 Lectric XP 3.0 or a $1,499 RadRunner helping put more riders on smaller electric vehicles, the chances for sharing the fun on e-bikes are growing, even in laggard countries like the US.

We may never get six bodies on one bike, but even two would be a good start!

via: TimesNowNews

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Tesla launches in Thailand, opens Model 3 and Y orders at competitive prices

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Tesla launches in Thailand, opens Model 3 and Y orders at competitive prices

Tesla has officially launched in Thailand and opened orders for Model 3 and Model Y at competitive prices.

It has been a little while since Tesla has expanded into a brand-new market. The company was trying hard to enter the Indian market for years, but the effort was put on hold earlier this year after negotiations with the government stalled.

A few weeks later, we learned that Tesla’s new market team turned its attention to Southeast Asia, and more specifically Thailand.

The automaker filed to register its product for sale in the country. That was the first indication that Tesla planned to enter the market.

In September, we reported that Tesla started to hire in Thailand – indicating that a launch was imminent.

Today, Tesla has officially launched its Model 3 and Model Y vehicles in Thailand with a small event in a luxury mall in central Bangkok.

The automaker has started taking orders through a new Thai configurator for those two models. Tesla is offering all variants of the Model 3 and Model Y for sale in Thailand:

The Model 3 starts at ฿1,759,000 in Thailand, which is the equivalent of about $50,000 USD and fairly competitive compared to other luxury EVs in the market.

The Model Y starts ฿1,959,000, or about $58,000 USD.

Interestingly, while Tesla is starting to take orders through the new configurator, the automaker doesn’t list expected delivery windows in the country.

While we don’t know when official deliveries from Tesla will start in Thailand, there are already a decent number of Tesla electric vehicles in the country.

They have been imported privately by the owners – and that’s a factor that Tesla takes into account when considering entering a new market. If many people are willing to go through the trouble of importing the vehicle, there’s a good chance that there’s a market for its vehicles in the country.

We even reported on the Thai police buying a fleet of Tesla Model 3 vehicles for police patrol back in 2020, pictured above.

The Thai auto market is more significant than most people would think. More than 750,000 cars were sold in the market last year, and it is expected to ramp up to 800K–900K this year. However, most of those vehicles are not in the same price range as Tesla vehicles.

Thailand is also a vehicle assembly hub with up to 2 million vehicles produced locally per year.

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U.S. pledges to ramp up supplies of natural gas to Britain as Biden and Sunak seek to cut off Russia

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U.S. pledges to ramp up supplies of natural gas to Britain as Biden and Sunak seek to cut off Russia

Rishi Sunak and Joe Biden photographed on the sidelines of the G20 Summit in Indonesia on Nov. 16, 2022.

Saul Loeb | AFP | Getty Images

LONDON — The U.K. and U.S. are forming a new energy partnership focused on boosting energy security and reducing prices.

In a statement Wednesday, the U.K. government said the new partnership would “drive work to reduce global dependence on Russian energy exports, stabilise energy markets and step up collaboration on energy efficiency, nuclear and renewables.”

The U.K.-U.S. Energy Security and Affordability Partnership, as it’s known, will be directed by a U.K.-U.S. Joint Action Group headed up by officials from both the White House and U.K. government.

Among other things, the group will undertake efforts to make sure the market ramps up supplies of liquefied natural gas from the U.S. to the U.K.

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“As part of this, the US will strive to export at least 9-10 billion cubic metres of LNG over the next year via UK terminals, more than doubling the level exported in 2021 and capitalising on the UK’s leading import infrastructure,” Wednesday’s announcement said.

“The group will also work to reduce global reliance on Russian energy by driving efforts to increase energy efficiency and supporting the transition to clean energy, expediting the development of clean hydrogen globally and promoting civil nuclear as a secure use of energy,” it added.

Commenting on the plans, U.K. Prime Minister Rishi Sunak said: “We have the natural resources, industry and innovative thinking we need to create a better, freer system and accelerate the clean energy transition.”

“This partnership will bring down prices for British consumers and help end Europe’s dependence on Russian energy once and for all.”

The news comes at a time of huge disruption within global energy markets following Russia’s invasion of Ukraine in February.

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The Kremlin was the biggest supplier of both natural gas and petroleum oils to the EU in 2021, according to Eurostat, but gas exports from Russia to the European Union have been signifciantly reduced this year. The U.K. left the EU on Jan. 31, 2020.

Major European economies have been trying to reduce their own consumption and shore up supplies from alternative sources for the colder months ahead — and beyond.

Top CEOs from the power industry have forecast that turbulence in energy markets is likely to persist for some time. “Things are extremely turbulent, as they have been the whole year, I would say,” Francesco Starace, the CEO of Italy’s Enel, told CNBC last month.

“The turbulence we’re going to have will remain — it might change a little bit, the pattern, but we’re looking at one or two years of extreme volatility in the energy markets,” Starace added.

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