OPEC and its oil-producing allies agreed Wednesday to their largest cut to daily crude output since the early days of the Covid-19 pandemic, a decision the Club took steps to prepare for earlier this week by paring our energy exposure. The Organization of Petroleum Exporting Countries and a group of partner producers led by Russia, together known as OPEC+, said they are cutting oil output targets by 2 million barrels per day. The move is seen as an attempt to reverse a steep slide in crude prices since early June, when prices topped $120 per barrel before tumbling more than 30%. Oil rose over 1% on the heels of the announcement, adding to strong gains at the start the week. Club holdings Halliburton (HAL), Pioneer Natural Resources (PXD), Devon Energy (DVN) and Coterra Energy (CTRA) also were in the green. The details Officially, OPEC+ is cutting production by 2 million barrels a day starting in November, from their August production target of 43.856 million barrels a day. However, analysts say, the actual number of barrels coming offline could ultimately be less than the headline figure given that many OPEC+ members have already been producing below their targets. Francisco Blanch, head of global commodities at Bank of America, addressed the potential discrepancy in a CNBC interview Wednesday . “I think one of the big questions is, are we really going to get a 2 million barrel a day real cut or is it going to be a 2 million barrel a day nominal cut that is, essentially, readjusted by the fact OPEC itself is producing 3 million barrels a day under their actual quotas?” Blanch explained. “I think if you reallocate those countries that are underproducing and they don’t actually cut, you’ll get, probably, more like [a] 1 million, 1.2 million barrels a day actual cut,” he added. The cartel’s decision to lower production is not a complete surprise to markets, but the expected magnitude ratcheted up in recent days. For example, last week, some analysts had been warning of a reduction between 500,000 and 1 million barrels per day, well below the headline cut OPEC+ delivered Wednesday. In the days leading up to the decision, energy markets started to price in OPEC+’s looming production adjustment. Brent crude, the global oil benchmark, rose nearly 7% over the first two days of the week. West Texas Intermediate, the U.S. oil benchmark, climbed more than 8% combined on Monday and Tuesday. After the OPEC+ announcement Wednesday, Brent was trading around $93 a barrel, while WTI was hovering above $87 a barrel. The Club’s positioning The Club’s energy exposure is all about protecting our portfolio from inflation, while collecting sizable dividend payouts along the way. In general terms, elevated oil prices are good for energy stocks and a headwind for the broader market. Owning stocks like Pioneer Natural Resources, Devon Energy, Coterra Energy and Halliburton has been a way to hedge against that dynamic. With oil supply already tight, OPEC+’s decision to slash production further is all about shoring up crude prices. Fears of a recession denting oil demand — combined with other factors like a strong U.S. dollar —contributed to crude prices tumbling during the summer months. We stuck to our investment discipline in the run-up to the OPEC+ meeting, as expectations for the cut pushed up oil prices. We trimmed 25 shares of Pioneer Natural Resources on Monday, redeploying cash from that sale into Estee Lauder (EL), and sold 100 shares of Devon Energy on Tuesday. We made those two sales of PXD and DVN into outsized strength — just as we trimmed our energy exposure when the sector was outperforming the overall market in late August and early September. After allowing our energy position to grow too large in early June, when oil was around $120 per barrel, we’ve been committed to our discipline in periods of outperformance. (Jim Cramer’s Charitable Trust is long PXD, DVN, CTRA and HAL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
The OPEC logo on a sign at the group’s headquarters in Vienna, Austria.
Bloomberg | Bloomberg | Getty Images
OPEC and its oil-producing allies agreed Wednesday to their largest cut to daily crude output since the early days of the Covid-19 pandemic, a decision the Club took steps to prepare for earlier this week by paring our energy exposure.
National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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