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.
The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
UPDATE: telematics announcement.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
XCMG battery swap crane; via Etrucks New Zealand.
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
“XCMG remains committed to advancing engineering technology to empower a sustainable future. Our mission is to deliver efficient, intelligent, and eco-friendly lifecycle solutions for global clients,” said Mr. Yang Dongsheng, Chairman of XCMG Group and XCMG Machinery. “Today, 19% of our product portfolio comprises green innovations under our ‘Green Mountain’ new energy line, with full electrification across all series underway.”
On today’s troubling episode of Quick Charge, we explore all the troubles befalling Tesla (and TSLA stock) in the month April – with top executives fleeing the ship, demand plummeting, sales slipping, government incentives at home and abroad under threat, and a raft of receipts brought on by an OpenAI lawsuit hitting the brand, it’s already a bad month for Elon … and there’s still 20 more days to go!
None of this even touches on the $43 million “backlogged” rebate scandal Tesla’s facing in Canada that’s being blamed for people’s negative attitudes about the brand (ha!) or the fact that neither the long-promised Roadster 2.0 or the Tesla Semi will see production anytime this year, either.
The word you’re looking for when you think of Tesla these days is, “cooked.”
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Renewable developer Vesper Energy has cut the ribbon on Hornet Solar in Swisher County, Texas, one of the largest single-phase solar farms in the US.
As Electrek reported in January, the 600-megawatt (MW) Hornet Solar includes over 1.36 million modules covering more than 6 square miles. The project will contribute more than $100 million in new tax revenue to Swisher County and deliver 600 MWac of energy–enough to power 160,000 homes annually.
January 30, 2025: “The seamless coordination between our team and our EPC partner, Blattner, has enabled us to remain ahead of schedule and on budget while ensuring quality throughout the process,” said Juan Suarez, co-CEO of Irving-based Vesper Energy.
Hornet Solar uses bifacial solar panels mounted on a single-axis tracking system to maximize efficiency. The solar farm is connected to Oncor Electric’s transmission system within ERCOT and is contracted to provide power to four off-take partners through individual Virtual Power Purchase Agreements (VPPAs).
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The Hornet Solar project in the Texas Panhandle is on track to be fully online by spring 2025.
Texas is a utility-scale solar leader in the US, with a ranking of No. 2 and 37,713 MW currently installed. It’s projected to install 51,144 MW over the next five years and move into the No. 1 spot, according to the Solar Energy Industries Association (SEIA). The total solar investment in the state is $45.2 billion.
On January 21, the SEIA, Conservative Texans for Energy Innovation (CTEI), Advanced Power Alliance (APA), and the Texas Solar + Storage Association (TSSA) reported that existing and expected utility-scale solar, wind, and battery storage projects will contribute over $20 billion in total tax revenue – and pay Texas landowners $29.5 billion – over the projects’ lifetimes.
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