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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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Stig drifts 2,000 hp electric Ford Supervan around Top Gear test track [video]

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Stig drifts 2,000 hp electric Ford Supervan around Top Gear test track [video]

The Top Gear TV show might be over, but its tamed racing driver – a masked, anonymous hot shoe known only as “the Stig” – lives on … and his latest adventure involves pitching the 1,400 hp electric Ford SuperVan demonstration vehicle around the famed Top Gear test track. Sideways.

Whether we’re talking about record lap times at hallowed motorsports grounds like Bathhurst or the Hillclimb at the Goodwood Festival of Speed, we’ve been covering the 1,400 hp SuperVan project for some time – but the big boxy Transit-ish racing van with hypercar-slaying performance never seems to get boring.

In this video from the official Top Gear YouTube channel (is Top Gear just a YouTube show, now?), the boxy Ford racer seems to have sprouted an additional 600 peak horsepower in its latest “4.2” iteration, for a stout 2,000 hp total. For his (?) part, the Stig puts all of those horses to work in what appears to be a serious attempt to take the overall track record.

I won’t spoil the outcome for you, but suffice it to say that even the most die-hard anti-EV hysterics will have to admit that SuperVan is a seriously quick machine.

SuperVan 4.2: How fast can a 2000 hp transit go?

[SPOILERS AHEAD] Even with 2,000 hp, instant torque, and over 4,000 lbs. of aerodynamic downforce, the SuperVan wasn’t able to beat the long-standing 1st and 2nd place spots held by the Renault R24 (a legit Formula 1 race car) and the Lotus T125 Exos (a track-only special that sure looks like a legit Formula 1 race car), but after crossing the line with a time of 1:05.3, the Ford claims third place on the overall leaderboard.

That 3rd place is likely to be a permanent spot on Top Gear‘s leaderboard, as well – as the track itself is likely to be demolished somewhat sooner than later.

You can check out the video (above) and watch the whole segment for yourself, or just skip ahead to the eight-minute mark to watch the tire-shredding sideways action promised in the headline. If you do, let us know what you think of Ford’s fast “van” in the comments.

SOURCE | IMAGES: Top Gear.

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First autonomous electric loaders in North America get to work

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First autonomous electric loaders in North America get to work

Swedish multinational Sandvik says it’s successfully deployed a pair of fully autonomous Toro LH518iB battery-electric underground loaders at the New Gold Inc. ($NGD) New Afton mine in British Columbia, Canada.

The heavy mining equipment experts at Sandvik say that the revolutionary new 18 ton loaders have been in service since mid-November, working in a designated test area of the mine’s “Lift 1” footwall. The mine’s operators are preparing to move the automated machines to the mine’s “C-Zone” any time now, putting them into regular service by the first of the new year.

“This is a significant milestone for Canadian mining, as these are North America’s first fully automated battery-electric loaders,” Sandvik said in a LinkedIn post. “(The Toro LH518iB’s) introduction highlights the potential of automation and electrification in mining.”

The company says the addition of the new heavy loaders will enable New Afton’s operations to “enhance cycle times and reduce heat, noise and greenhouse gas emissions” at the block cave mine – the only such operation (currently) in Canada.

Electrek’s Take

Epiroc announces new approach to underground mining market in North America
Battery-powered Scooptram; image by Epiroc

From drilling and rigging to heavy haul solutions, companies like Sandvik are proving that electric equipment is more than up to the task of moving dirt and pulling stuff out of the ground. At the same time, rising demand for nickel, lithium, and phosphates combined with the natural benefits of electrification are driving the adoption of electric mining machines while a persistent operator shortage is boosting demand for autonomous tech in those machines.

The combined factors listed above are rapidly accelerating the rate at which machines that are already in service are becoming obsolete – and, while some companies are exploring the cost/benefit of converting existing vehicles to electric or, in some cases, hydrogen, the general consensus seems to be that more companies will be be buying more new equipment more often in the years ahead.

What’s more, more of that equipment will be more and more likely to be autonomous as time goes on.

We covered the market outlook for autonomous and electric mining equipment earlier this summer, and I posted an episode exploring the growing demand for electric equipment on an episode of Quick Charge I’ve embedded, below. Check it out, then let us know what you think of the future of electric mining in the comments.

More EVs means more mines, equipment

SOURCE | IMAGES: Sandvik, via LinkedIn.

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Contargo logistics adds 20 Mercedes eActros 600 electric semis to fleet

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Contargo logistics adds 20 Mercedes eActros 600 electric semis to fleet

European logistics firm Contargo is adding twenty of Mercedes’ new, 600 km-capable eActros battery electric semi trucks to its trimodal delivery fleet, bringing zero-emission shipping to Germany’s hinterland.

With over 300 miles of all-electric range, the new Mercedes eActros 600 electric semi truck was designed for (what a European would call) long-haul trucking. Now, after officially entering production at the company’s Wörth plant in Bavaria last month, the eActros 600 is reaching its first customer: Contargo.

With the addition of the twenty new Mercedes, Contargo’s electric truck fleet has grown to 60 BEVs, with plans to increase that total to 90. And, according to Mercedes, Contargo is just the first.

The German truck company says it has plans to deliver fifty (50) of the 600 kWh battery-equipped electric semi trucks to German shipping companies by the close of 2024.

Contargo’s 20 eActros 600 trucks were funded in part by the Federal Ministry for Digital Affairs and Transport as part of a broader plan to replace a total of 86 diesel-engined commercial vehicles with more climate-friendly alternatives. The funding directive is coordinated by NOW GmbH, and the applications were approved by the Federal Office for Logistics and Mobility.

Electrek’s Take

Holcim, a global leader in building materials and solutions, has recently made a significant commitment to sustainability by placing a purchase order for 1,000 Mercedes electric semi trucks.
Mercedes eActros electric semi; via Mercedes.

Electric semi trucks are racking up millions of miles in the US, and abroad. As more and more pilot programs begin to pay off, they’re going to lead to more orders for battery electric trucks and more reductions in both diesel demand and harmful carbon emissions.

We can’t wait to see more.

SOURCE | IMAGES: Contargo, via Electrive.

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