Oil prices could hit an ‘off the charts spike,’ says strategist

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3 years ago

October 6, 2021

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Oil prices could experience an “off the charts spike” as winter approaches and OPEC and its allies stick to their earlier pact on oil output, a strategist told CNBC.

OPEC+ — the Organization of the Petroleum Exporting Countries, with their allies including Russia — have been under pressure from top consumers, such as the United States and India, to add extra supplies after oil prices surged 50% this year.

However, the oil cartel agreed on Monday to stick to an existing pact to hike oil output by 400,000 barrels per day (bpd) in November, shrugging off calls to pump more oil.

What I think [is] more concerning to everyone out there … what happens during the winter? Are we going to have another Arctic freeze?

John Driscoll

JTD Energy Services

John Driscoll, chief strategist at JTD Energy Services, said the decision by OPEC+ was a “very prudent course of action” until one considers the ongoing energy crises and possible supply disruptions.

“What I think [is] more concerning to everyone out there … what happens during the winter? Are we going to have another Arctic freeze?” Driscoll told CNBC’s “Squawk Box Asia” on Tuesday.

He pointed to the shortage of fuel in the U.K. — with long queues of cars waiting to buy gas, as well as “fist fights.” In the U.K., people have been panic buying fuel, causing shortages, as well as straining the fuel supply chains.

BURY ST EDMUNDS, SUFFOLK, UNITED KINGDOM – 2021/09/25: People filling their cars up at BP petrol station during the fuel crisis in Bury St Edmunds.

SOPA Images | LightRocket | Getty Images

“When you get into winter, what you really have to worry about is this non-discretionary demand,” Driscoll said. Non-discretionary demand refers to essential spending for daily goods and services.

Driscoll said what’s especially worrying is a thin inventory, or if there’s “any kind of supply chain glitch.”

Supply chains have been strained by the panic buying of fuel in Britain, and is due in part to a major lack of truck drivers due to Brexit and the U.K.’s new trading relations with the EU. It’s led the U.K. to resort to bringing in the army to deliver fuel.

“You could see an off the charts spike — that is one scenario out there,” said Driscoll, of oil prices. “I don’t really hear anybody talking about the prospects of a mild subdued winter. I think, given all the uncertainty over weather and climate change, we could be in for a wild ride here.”

Oil prices hit a three-year high after the OPEC+ decision. Brent was last at $82.47 per barrel on Wednesday morning during Asia hours, and WTI was at $78.84.

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But energy prices were already surging this year, with crude jumping more than 50% year-to-date, adding to inflationary pressures.

Oil at $100?

Oil prices jumping to $100 per barrel is possible, but it’s not one that is sustainable, Driscoll said.

“I see that as kind of a lower probability scenario. That is, if everything goes wrong, if we have Arctic weather, if we’ve got glitches, breakdowns in the deliverability, the supply chains. That is a possible scenario but I don’t see that likely to be sustainable,” he said.

Driscoll also pointed to the energy crisis in China, which led to widespread disruptions as local authorities ordered power cuts at many factories.

As the country grapples with the energy shortage, the demand for natural gas and coal has spiked as Beijing ordered energy companies to ensure sufficient supplies to avoid outages during winter, according to Reuters.

Over in Europe, the region is also grappling with its own power crisis with a massive gas crunch.

That confluence of crises resulting in a gas shortage is set to boost demand for oil, ahead of what’s expected to be a colder winter, analysts have warned.

— CNBC’s Sam Meredith and Chloe Taylor contributed to this report.

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Jim Cramer is encouraged by updates on 3 stocks that indicate further upside ahead

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2 hours ago

November 5, 2024

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Jim Cramer is encouraged by updates on 3 stocks that indicate further upside ahead

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Kia unveils two off-road concept EVs at SEMA: The EV9 ‘ADVNTR’ and a PV5 ‘WKNDR’ van

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2 hours ago

November 5, 2024

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Kia unveils two off-road concept EVs at SEMA: The EV9 'ADVNTR' and a PV5 'WKNDR' van

Days after teasing a major reveal at the 2024 Specialty Equipment Market Association (SEMA) show, Kia has unveiled two unique and custom-built EV concepts designed for adventure off-road. During the unveiling, we got a look at a new spin on the ever-popular EV9 SUV called the “ADVNTR” and a rugged take on one of Kia’s new purpose-built vehicles (PBVs), the PV5, called “WKNDR.”

On October 30, Kia America posted a clandestine press release about an upcoming reveal at the annual SEMA show in Los Angeles. The first release featured a shadowy image of what appeared to be some off-road vehicle, with its recognizable Kia front fascia shining at the camera lens. The text read, “All roads lead to SEMA.”

We speculated that SEMA might be the event where Kia finally unveils the first of its two promised BEV pickup trucks. Since the headlamps closely resembled those of an EV9, we thought it could be the mule pickup we reported being tested in the US earlier this year. We were close.

Later that same day, Kia followed up with a second press release with the same title and quote but an image of a different off-road EV shining through the darkness, one that was much less recognizable.

Both releases had fine print stating that the vehicle in each image was a concept, so we curbed our expectations heading into this week’s 2024 SEMA show. This morning, Kia officially unveiled these two new off-road concept EVs, and they’re pretty cool looking. Have a gander at the EV9 ADVNTR and the PV5 WKNDR.

Kia off-road — The EV9 ADVNTR Concept EV / Source: Kia America

Kia unveils off-road concepts of its EV9 and PV5 EVs

According to the Korean automaker, designers from Kia Design Center America (KDCA) in Irvine, CA, imagined both off-road concepts. SEMA is usually a stage for OEMs to showcase concepts and accessories that are more rugged or heavy-duty.

Hence, the Kia team brought its A-game to Vegas with two new concept EVs that “intrinsically blend form and function into machines designed for responsible engagement with nature.”

The first is the EV9 ADVNTR, based on the three-row SUV that contributed to record sales for Kia in the US in October. Today, Kia shared that its off-road concept version of the EV9 is equipped with new custom front and rear facias, reinforced rocker panels, and rugged tires for more maneuverability in the elements.

Additionally, the EV9 ADVNTR can lift 3 inches higher than the standard 2025 SUV model and features a new roof rack that can haul luggage and hiking gear or support a roof-mounted tent.

In addition to the EV9 ADVNTR, Kia unveiled an off-road concept version of its new PV5 called the WKNDR. The PV5 is a middle-of-the-pack BEV in Kia’s latest ‘Purpose Beyond Vehicle’ lineup, which debuted at CES 2024.

While the standard PV5 was designed for commercial operations and last-mile deliveries, the Kia design team decided to take it off-road with the new WKNDR concept. This BEV van has been lifted and rigged with some hefty off-road tires, but like its predecessor, the interior of the PV5 WKNDR is what truly stands out.

Kia describes the off-road concept van as a “Swiss Army Knife on wheels,” offering a modular cabin that can be customized to an owner’s wants and needs. The conceptual design features a first-of-its-kind storage solution called the “Gear Head” feature that delivers off-board, sheltered storage space for equipment when the vehicle is stationary, maximizing interior space while providing owners with easy access to all their belongings.

Thanks to its modularity, Kia shared that the off-road van’s “Gear Head” space can also be converted into a mobile pantry for those foodies who want to assemble an array of cuisine while parked out in nature, or anywhere for that matter.

Kia also shared that its team designed the PV5 WKNDR to be self-sufficient as an off-road BEV. It features solar panels and hydro turbine wheels that can recharge the vehicle’s batteries and power other components, like an onboard compressor.

Since these remain mere concepts, we don’t have any performance specs for the Kia EV9 ADVNTR or PV5 WKNDR, nor can we confirm that either model will reach bonafide production for sale. However, Kia is thinking beyond its current lineup and is at least flirting with the idea of delivering some new models that would compete against the likes of Ford, Rivian, and recent reveals from VW Group’s Scout Motors.

At the very least, we may see some of these features and design elements in Kia’s upcoming BEV pickups. For now, however, these off-road EV concepts are an exciting exercise in design that once again shows how innovative and creative Hyundai Motor Group is across virtually all BEV segments.

We hope to see more concrete unveilings from the Korean automaker soon.

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These EVs are a steal with lease prices under $300 a month this November

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2 hours ago

November 5, 2024

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These EVs are a steal with lease prices under 0 a month this November

With big discounts and lower-priced models hitting the market, electric vehicles are getting more and more affordable. Here are the EVs you can drive off in this November with lease prices under $300 a month.

EVs for lease for under $300 a month November 2024

New models like the Honda Prologue and Chevy Blazer, Equinox, and Silverado EVs are rolling out nationwide, giving buyers more options than ever.

According to Cox Automotive, over 100,000 EVs were sold in the US in September, the sixth straight month topping the 100K mark. Electric vehicles accounted for 9% of the US auto market, its highest to date.

The average transaction price (ATP) for new EVs was $56,328, but drastically higher incentives bring prices on par with or even under many comparable gas cars.

For example, the Honda Prologue electric SUV is available to lease for as low as $295 per month, including the down payment. That’s cheaper than a Honda Civic at $376 per month.

The Honda Prologue is one of the best EVs to lease this November. Here are the other models worth considering this month.

	Lease From	Term (months)	Due at Signing	Effective rate per month (including upfront fees)
2024 Nissan LEAF	$109	36	$2,529	$179
2024 Kia Niro EV	$169	24	$3,999	$336
2024 Kia EV6	$179	24	$3,999	$346
2024 VinFast VF 8	$199	36	$894	$244
2024 Hyundai IONIQ 5	$159	24	$3,999	$326
2024 Honda Prologue	$259	36	$1,299	$295

EVs for lease under $300 per month in November 2024

According to online auto research firm CarsDirect, the Nissan LEAF retained the title of the cheapest EV you can lease in November listed at just $109 per month in Colorado.

With $2,529 due at signing, the effective monthly rate is just $179. However, the deal only includes state incentives, not offered elsewhere.

Kia’s Niro EV and EV6 are two of the best EV lease options this month, with monthly rates of $169 and $179.

After a recent price cut, the EV6 is offered at its lowest monthly rate since hitting the market. That’s for the Light Long-Range model with up to 310 miles of range.

The Hyundai IONIQ 5 remains a top lease option in November, with the updated 2025 model set for deliveries later this year. With lease prices starting at just $159 per month, Hyundai is offering its best-selling electric SUV at closeout prices.