Oil prices are headed for $100 despite U.S. efforts to release reserves, analyst says

Published

4 years ago

November 27, 2021

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Oil prices could climb higher despite the U.S. and other major consumers releasing millions of barrels of oil from their reserves to try to keep energy prices down, one analyst told CNBC.

“It’s not going to work simply because the strategic petroleum reserve — any country’s strategic petroleum reserve is not there to try to manipulate price,” Stephen Schork, editor of the Schork Report, said Wednesday on CNBC’s “Squawk Box Asia.”

Strategic petroleum reserves exist only to offset short-term, unexpected supply disruptions, he explained.

“There’s a considerable amount of bets out there that we will see $100 a barrel oil,” Schork said, adding it could happen as early as the first quarter of next year, especially if there is a cold winter in the Northern Hemisphere.

Calming oil prices

Oil prices have jumped more than 50% this year, with demand outstripping supply as more countries emerge from national lockdowns and severe restrictions imposed since last year due to the pandemic. Resumption of international travel as more nations re-open borders is also boosting jet fuel demand.

Global benchmark Brent surpassed the psychologically key threshold of $80 per barrel in October and prices have held near that level. As of Wednesday afternoon in Asia, the international contract traded near $82.50.

It is a clear sign of desperation that this is the only tool in the box and it is not going to work.

Stephen Schork

editor of the Schork Report

U.S. President Joe Biden announced Tuesday that the U.S. will release 50 million barrels from its reserves as part of a global effort by energy-consuming countries to calm the rapid rise in fuel prices. Of that total, 32 million barrels will be an exchange over the next few months, and 18 million barrels will be an acceleration of a previously authorized sale.

Other countries that made the joint commitment include China, India, Japan, South Korea and the United Kingdom.

So far, the U.K. has agreed to release about 1.5 million barrels while India committed to 5 million barrels. China, Japan and South Korea have yet to announce specific numbers.

“We are talking 50 million barrels coming out of the United States, potentially another 50 from our partners. That’s 100 million barrels of oil — that is one day’s worth of a global demand for crude oil,” Schork said.

Vivek Dhar, a mining and energy commodities analyst at the Commonwealth Bank of Australia, was more conservative in his estimates. He predicted in a Wednesday note that the number of barrels released by the six oil-consuming countries could amount to “just north of 70 million,” as the release of oil stockpiles from the other countries may be “relatively tame.”

The world consumed 97.53 million barrels of oil per day this year, up from 92.42 million barrels a day in 2020, according to the U.S. Energy Information Administration. In 2022, that figure is set to rise to 100.88 million barrels a day.

“It is a clear sign of desperation that this is the only tool in the box and it is not going to work. I do believe the market will call the U.S.’s bluff on this and we’re likely to see higher prices rather than lower prices one month from now,” Schork said.

Under such conditions, countervailing moves by each side are likely to lead to increased volatility, producing seesawing oil prices and added uncertainty.

Eurasia Group

The U.S. should consider bringing American producers to the table and ask them to ramp up output to offset the supply imbalance, he added.

Commonwealth Bank’s Dhar said a rebound in oil prices on Tuesday indicated that “markets were underwhelmed with the co-ordinated release of strategic oil reserves.”

Showdown with OPEC+

The latest development came after OPEC and its oil-producing allies decided not to pump more oil despite crude prices climbing to multi-year highs and U.S. pressure to help cool the market.

Under its current output plan, the group, known as OPEC+, will gradually increase oil production by 400,000 barrels per day each month. They are due to meet again next month.

Oil well pump jacks operated by Chevron Corp. in San Ardo, California, U.S., on Tuesday, April 27, 2021.

David Paul Morris | Bloomberg | Getty Images

“There have, as of yet, been no signs that OPEC+ is reconsidering its plan,” Eurasia Group analysts said in a note dated Nov. 22, prior to Biden’s announcement overnight. A large-scale stock release by oil consumers before OPEC+ meets may prompt a countermove by the group, resulting in a “disruptive standoff,” they said.

“Under such conditions, countervailing moves by each side are likely to lead to increased volatility, producing seesawing oil prices and added uncertainty,” the Eurasia Group analysts said.

“This would neither alleviate consumer price pressure nor give producers the required stability to ensure steady and reliable supply to a global economy that is still grappling with the worst pandemic in a century,” they added.

Wheel-E Podcast: 1M Tern miles, kids on Sur Rons, LiveWire scooter, more

Published

2 hours ago

December 5, 2025

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Wheel-E Podcast: 1M Tern miles, kids on Sur Rons, LiveWire scooter, more

This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes Tern’s NYC e-bike delivery fleet surpasses 1 million miles, the CPSC has a stark warning about Rad’s e-bike batteries, what parents should know if their kid wants a Sur Ron e-moto, JackRabbit MG Doble review, Strutt’s EV1 electric mobility chair, and more.

The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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Here are a few of the articles that we will discuss during the Wheel-E podcast today:

Here’s the live stream for today’s episode starting at 9:00 a.m. ET (or the video after 10:00 a.m. ET):

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Environment

New electric SANY reach stacker gets to work at Houston Terminal

Published

2 hours ago

December 5, 2025

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New electric SANY reach stacker gets to work at Houston Terminal

Houston Terminal goes electric with help from Equipment Depot — Image by Equipment Depot.

The Port of Houston took a big step towards electrifying its operations this week, when the stevedores at Houston Terminal deployed the first new SANY electric reach stacker at the major seaside port – and it won’t be the last.

Multinational equipment brand SANY launched its latest 50-ton electric reach stacker earlier this summer. The new machine drew headlines by cleverly pairing gravity and a KERS-style regenerative braking system attacked to its boom to generate electricity as it lowers loads. The tech significantly improved the machine’s operating efficiency and reduced the sort of costs typically associated with charging and downtime.

With the purchase of the new SANY electric reach stacker from local equipment dealer, Equipment Depot, Houston Terminal has begun to do its part to help keep the air and water around America’s busy seaports pollution-free.

“In this market, there’s a shift towards sustainable equipment,” explains Greg Schertz, Sr. National Account Executive at Equipment Depot — a national equipment supplier that sells and services to roughly 85% of US sea ports. “Electric equipment is a growing trend, and it has become more than a conversation point. Actual machines are going into service and are proving their capability.”

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Equipment Depot is quick to point out that the national move towards electrification isn’t about regulations. “The bigger picture is that the world has become more of a global market,” says Chad Larson, VP of Heavy Trucks and Port Equipment at Equipment Depot. “(And) in the port industry, there are many relationships and parent companies with ties into Europe and other parts of the world where zero carbon initiatives are more progressive than the US.”

Robert Marshall, General Manager of Houston Terminal, echoes Schertz’ sentiment, “Electric equipment has a much easier, much simpler maintenance program, because basically you’re just maintaining tires.”

SANY electric reach stacker

Sany launches world’s first 50-tonne energy storage reach stacker — 50t reach stacker; via SANY.

At its launch in August, SANY said its new 50t reach stacker would be available with a 512 kWh swappable battery pack. That pack isn’t just huge, it’s compatible with the brand’s other electric equipment assets, and can support both DC fast charging when swapping isn’t practical and the grid itself by “plugging in” to the company’s BESS modules when not needed.

Houston Terminal bought the SANY unit with help from a Texas Emissions Reduction Plan (TERP) Grant, part of TERP’s Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program to replace older drayage trucks and equipment at seaports and rail yards. Houston Terminal intends to apply for another TERP grant to buy a second reach stacker in 2026.

SOURCE | IMAGES: Equipment Depot; via AJOT.

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Environment

Sandvik gets €500M from European Investment Bank for new, smart EVs

Published

3 hours ago

December 5, 2025

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Sandvik gets €500M from European Investment Bank for new, smart EVs

Sandvik signs EUR 500 million loan agreement with the European Investment Bank

The mining equipment experts at Sandvik have been developing next-generation electric equipment options for years – largely on their own. Now, with a €500 million capital injection from the EIB, the company is ready to get serious about its next-generation machinery.

The European Investment Bank (EIB) is the lending arm of the European Union (EU), and its core mission is to strengthen the global competitiveness, technological innovations, and sustainability initiatives of European companies like Sandvik by providing affordable financing for R&D projects conducted on the continent.

“We have a strong strategic focus on developing solutions that strengthen our technology leadership, and that enhances productivity, safety and sustainability for our customers,” explains Stefan Widing, President and CEO of Sandvik. “The EIB financing supports our R&D initiatives and provides flexibility to our overall funding strategy.”

The €500 million loan has a seven-year term, and will support Sandvik’s efforts to develop new advanced, productive, safe, and (above all) sustainable heavy equipment solutions across the company’s business lines.

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Electrek’s Take

We’ve covered Sandvik’s electric equipment several times over the years, from their surface drill rigs to their underground loaders to their quarry- and concrete-focused electric cone plants, and the brand’s commitment to sustainability and operator safety has been commendable. Even the company’s push towards automation and AI, often seen as a corporate tactic to slash labor costs and boost stock prices before the executives ~~bail out with a fat stack of cash~~ fulfill their exit strategies, seems to be genuinely motivated by worker safety in one of the world’s most dangerous environments.

Of course, I said that about Volvo and they’re actively suing California to be able to sell more diesels as aI type this, so what do I know?

SOURCE | IMAGES: Sandvik.

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