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G7, the EU and Australia implemented on December 5 a cap on Russian oil prices. Market players have doubts the measure will be effective.

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BRUSSELS — A price cap on Russian seaborne oil will work, EU ministers told CNBC, despite attempts from the Kremlin to escape sanctions and a broad market skepticism over the measure.

The EU, alongside the G-7 and Australia, agreed on Friday to limit the purchases of Russian oil to $60 a barrel as part of a concerted effort to curtail Moscow’s ability to fund its war in Ukraine.

The price cap came into force on Monday. In essence, the measure stipulates oil produced in Russia can only be sold with the necessary insurance approval at or below $60 a barrel. Insurance companies are mostly based in G-7 nations.

However, Russia has already said it will not sell oil to nations complying with the cap and that it is ready to cut production to maintain its revenues from the commodity.

In addition, reports suggested that it has been putting together a fleet of about 100 vessels to avoid oil sanctions. Having its own so-called “shadow fleet” would allow the Kremlin to sell its oil without needing insurance from the G-7 or other nations.

When asked if the oil cap can work in reducing Russia’s oil revenues, Irish Finance Minister Paschal Donohoe said, “Yes, it can.”

It is “the right message at the right time,” he said in an interview with CNBC on Monday.

One of the big open questions is the role of India and China in the implementation of this price cap.

Both nations have stepped up their purchases of Russian oil in the wake of the invasion of Ukraine, and they are reluctant to agree to the cap. India’s petroleum minister reportedly said Monday that he “does not fear” the cap and he expects the policy to have limited impact.

However, France’s Finance Minister Bruno Le Maire told CNBC on Monday: “I think it’s worth trying.”

“Then we will assess the consequences of the implementation of this oil cap,” he added.

Market players remain skeptical

The level of the cap will be reviewed in early 2023. This revision will be done periodically and the aim is to set it “at least 5% below the average market price for Russian oil,” according to the agreement reached by EU nations last week.

European Commission President Ursula von der Leyen said over the weekend that the limit on oil prices will help the bloc stabilize energy prices. The EU has been forced to abruptly reduce its dependence on Russian hydrocarbons due to the Kremlin’s war in Ukraine.

Market players, however, remain wary about the integrity of the policy.

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Analysts at Japan’s Mitsubishi UFJ Financial Group said in a note Monday that the scale of the price cap’s impact “remains ambiguous.” They added, “we have been sceptical on the practicalities of its success.”

There is a risk that nations buy Russian oil at the agreed cap but then resell it at a higher price to Europe, for example. This would mean that Russia would still make money from the commodity sales while Europe would be paying more at a time when its economy is already slowing down.

“The introduction of the cap on the price will probably not remove all the volume, some will find its way to the markets,” Angelina Valavina, head of EMEA Natural Resources and Commodities at the Fitch Group, told CNBC’s “Street Signs Europe” Monday.

Oil prices traded higher Tuesday morning in London.

Both international benchmark Brent crude futures and West Texas Intermediate futures traded 0.4% higher at around $83 a barrel and $77 a barrel respectively.

Crude futures traded higher Monday morning, following a decision by OPEC+ nations to keep output targets unchanged, but moved lower in afternoon trading.

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What EV sales slump? Illinois’ EV sales outpace the nation by 4:1

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What EV sales slump? Illinois' EV sales outpace the nation by 4:1

Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.

Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.

Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)

What’s going on in Illinois?

File:Illinois Governor J. B. Pritzker (33167937268).jpg
Illinois Governor JB Pritzker at the Chicago Auto Show; by Ray Cunningham.

While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.

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At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).

We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.

SOURCES: Chicago Business, Ray Cunningham; featured image by the author.

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XCMG launches XE215EV battery swap electric excavator ahead of bauma

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XCMG launches XE215EV battery swap electric excavator ahead of bauma

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.

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 is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.

We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).

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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.

You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.

SOURCE | IMAGES: XCMG.

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Volvo shows off production PU500 battery energy storage system

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Volvo shows off production PU500 battery energy storage system

As “extreme” weather events become more commonplace, the demand for reliable and portable energy continues to rise. In response to that growing demand for dependable off-grid power, Volvo has developed the new PU500 Battery Energy Storage System (BESS) designed to take electrical power when it’s needed most.

Designed to be deployable in a number of environments at a moment’s notice, the Volvo Energy PU500 BESS is equipped with approximately 500 kWh of usable battery capacity (up to 540 kWh total). More than enough juice, in other words, to power a remote construction site, disaster response effort, or even a music festival – anything that needs access to reliable electricity beyond a grid connection.

That’s great, but what sets the PU500 apart from other battery storage solutions is its integrated 240 kW DC fast charger.

“With an integrated CCS2 charger, the PU500 is designed to work with all brands of electric equipment, trucks, and passenger cars,” says Niklas Thulin, Head of BESS Product Offer at Volvo Energy. “This ensures that no matter what type of electric vehicle or machinery you rely on, the PU500 can provide the power you need, making it a truly flexible solution for any grid constrained site or location.”

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The integrated charger in the PU500 has the impressive ability to charge a heavy equipment asset (be that an electric semi truck or something like a wheel loader) in under two hours. Its on-board capacity allows to fully recharge up to 3 electric HD trucks or 20 electric cars per day, making it an incredibly versatile disaster response asset.

Electrek’s Take

Stockholm progresses with electric construction site from Volvo CE
Electric job site; via Volvo CE.

As we often say over at The Heavy Equipment Podcast, “just because you’re working for the power company doesn’t mean you have power,” and there are hundreds of scenarios where the extra power provided by something like the new PU500 would be useful. Its ability to be palletized and easily moved or swapped out of a larger BESS array, too, just add to its flexibility.

SOURCE | IMAGES: Volvo.

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