Crude prices and oil stocks jumped Monday after OPEC+ members announced a surprise production cut, giving investors an opportunity to pare back their energy exposure. Indeed, the Club would’ve exited our Devon Energy (DVN) position Monday if not for restrictions that prevent us from trading the stock. Saudi Arabia and fellow members of the Organization of Petroleum Exporting Countries said Sunday they are reducing oil output targets by a combined 1.16 million barrels per day. The planned reduction — set to go into effect in May and last through 2023 — is a “precautionary measure aimed at supporting the stability of the oil market,” Saudi Arabia’s energy ministry said in a statement. This latest production decrease is in addition to the 2-million-barrels-per-day cut implemented in November by OPEC and a group of partner producers led by Russia, together known as OPEC+. Russia also said Sunday its 500,000 barrel-per-day cut will extend through the end of the year, instead of lapsing in June. However, many analysts had expected Russia’s output reduction to be extended. Oil prices rose more than 6% on Monday, with U.S. crude benchmark West Texas Intermediate climbing above $80 per barrel for the first time since early March. In mid-March, WTI had fallen to its lowest levels since December 2021 on concerns that the U.S. banking crisis could hurt economic growth. Brent crude, the international benchmark, traded around $85 per barrel Monday, extending its rally off recent lows in the low $70s. Halliburton (HAL) shares surged more than 8% Monday, to over $34 each, as the best-performing Club energy stock. Devon and Pioneer Natural Resources (PXD) climbed roughly 6% and 4%, respectively. Shares of Coterra Energy (CTRA), our energy stock most focused on natural gas, rose 2.3%. Some analysts raised their oil price targets in response to the production cut, including Goldman Sachs, which now sees Brent at $95 per barrel at year-end, up from $90. “This is a revenue-maximizing decision for OPEC under all the different scenarios. It was a voluntary cut,” Goldman’s commodities chief Jeff Currie said Monday on CNBC. “We have emphasized that OPEC’s pricing power is higher than it has ever been, and that they’re going to continue to exercise that power.” Citigroup analysts cautioned that “headwinds still lie ahead” for global oil markets, even if an initial spike in prices is “inevitable.” Eventually, the firm said in a note to clients, there could be a “realization that the market is a lot weaker than people think,” pointing to China’s slower-than-expected Covid reopening and diminished demand in many Western economies. Club take The Club views Monday’s oil move as a trimming opportunity because our read on the OPEC+ cut is similar to Citigroup — it’s a sign the demand side is tepid. In the short run, Jim Cramer said, oil prices could certainly climb a bit higher, possibly back to the $90-per-barrel level. “But at that point, you really have some resistance,” Jim said, because “the economies are not that strong around the world.” To be sure, we’re not looking at completely ditching our energy exposure for a few reasons. It still can act as a hedge against inflation, and our companies within the sector are cheap from an earnings and free cash flow perspective. They also have the robust capital return programs we covet. That’s why in March we added to our Pioneer position twice and Halliburton once at what is now much lower prices. When everyone hated oil and pushed those stocks lower, we stepped in to buy. But after this quick pop, we want our positions to be in accordance with our current worldview on economic growth and oil demand. We see China as the major outlier in the coming months as the world’s second-largest economy reopens from harsh Covid restrictions. Our positions in Estee Lauder (EL), Wynn Resorts (WYNN) and Starbucks (SBUX) allow us to benefit from that China tailwind. In energy, we want to consolidate from four stocks to three, and Devon is the one with we expect to move on from after the exploration and production (E & P) firm’s disappointing quarterly results in February . For weeks, we said we were waiting for a bounce in the stock to make the sale. We are experiencing that bounce now. As a reminder, Club rules prevent us from making a trade in any stock that Jim has mentioned on CNBC for 72 hours. That’s why we’re unable to sell Devon on Monday. (Jim Cramer’s Charitable Trust is long DVN, HAL, CTRA and PXD . 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.
Active pump jacks increase pressure to draw oil toward the surface at the South Belridge Oil Field on February 26, 2022, in unincorporated Kern County, California, approximately 141 miles (227 km) northwest of Los Angeles, California.
Robyn Beck | AFP | Getty Images
Crude prices and oil stocks jumped Monday after OPEC+ members announced a surprise production cut, giving investors an opportunity to pare back their energy exposure. Indeed, the Club would’ve exited our Devon Energy (DVN) position Monday if not for restrictions that prevent us from trading the stock.
Credit where credit is due: in a massive, 32-car multinational independent test, Tesla’s Autopilot ADAS came out on top, the new affordable Tesla turns out to be a corner-cutting Model Y, and one of the company’s original founders compares the Cybertruck to a dumpster. All this and more on today’s episode of Quick Charge!
Today’s episode is brought to you by Retrospec – the makers of sleek, powerful e-bikes and outdoor gear built for everyday adventure! To that end, we’ve got a pair of Retrospec e-bike reviews followed up by a super cute, super affordable new EV from China with nearly 150 miles of range for less than $5,000 USD.
PLUS: listeners can get an extra 10% off by using code ELECTREK10 at retrospec.com!
New episodes of Quick Charge are recorded, usually, Monday through Thursday (most weeks, anyway). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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Tesla is again teasing the new Roadster, which is now five years late, as “the last driver’s car” before self-driving takes over.
The chicken or the egg. Is Tesla delaying the Roadster to match the development of self-driving technology, or is it delaying the development of self-driving technology to match the delayed release of the Roadster?
The prototype for the next-generation Tesla Roadster was first unveiled in 2017, and it was initially scheduled to enter production in 2020; however, it has been delayed every year since then.
It was supposed to achieve a range of 620 miles (1,000 km) and accelerate from 0 to 60 mph in 1.9 seconds.
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It has become a sort of running joke, and there are doubts that it will ever come to market despite Tesla’s promise of dozens of free new Roadsters to Tesla owners who participated in its referral program years ago.
Tesla used the promise of free Roadsters to help generate billions of dollars worth of sales, which Tesla owners delivered; however, the automaker never delivered on its part of the agreement.
Furthermore, many people placed deposits ranging from $50,000 to $250,000 to reserve the vehicle, which was initially scheduled to hit the market five years ago.
When unveiling the vehicle, CEO Elon Musk described it as a “halo car” that would deliver a “smack down” to gasoline vehicles.
That was almost eight years ago, and many electric hypercars have since launched and delivered this smackdown.
Tesla has partly blamed the delays on improving the next-gen Roadsters and added features like the “SpaceX package,” which is supposed to include cold air thrusters to enable the vehicle to fly – Musk has hinted.
Many people don’t believe any of it, as Tesla has said that it would launch the new Roadster every year for the last 5 years and never did.
Now, Lars Moravy, Tesla’s head of vehicle engineering, made a rare new comment about the next-generation Roadster during an interview at the X Takeover event, an annual gathering of Elon Musk cultists, last weekend.
He referred to Tesla’s next-gen Roadster as the “last best driver’s car” and said that the automaker did “some cool demos” for Musk last week:
We spent a lot of time in the last few years rethinking what we did, and why we did it, and what would make an awesome and exciting last best driver’s car. We’ve been making it better and better, and it is even a little bit more than a car. We showed Elon some cool demos last week and tech we’ve been working on, and he got a little excited.
We suspected that the comment might be about the Tesla Roadster, as the CEO made the exact same comment about Roadster demos in 2019 and 2024. You will not be shocked to hear that these demos never happen.
Electrek’s Take
The “last best driver’s car” before computers are going to drive us everywhere. It’s a self-fulfilling prophecy if you continue to delay the car. It might literally be the last car ever made that way. How would we ever know?
The truth is that the Roadster was cool when it was unveiled in 2017, but that was a long time ago. Tesla would need to update the car quite a bit to make it cool in 2025, and I don’t know that cold air clusters are it. You will have extreme limitations using those.
The Roadster is almost entirely in the “put up or shut up” category for me at Tesla. They need to stop talking about it and make it happen; otherwise, I can’t believe a word.
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The PV5 is already available in several markets, but will Kia launch it in the US? After Kia’s electric van was spotted testing in the US again, a US debut could be in the works.
Is Kia’s electric van coming to the US?
Kia launched the PV5, the first dedicated electric van from its new Platform Beyond vehicle (PBV) business, in South Korea and Europe earlier this year, promising it will roll out in “other global markets” in 2026.
Will that include the US? Earlier this year, Kia’s electric van was caught charging at a station in Indiana. Photos and a video sent to Electrek by Alex Nguyen confirmed it was, in fact, the PV5.
Kia has yet to say if it will sell the PV5 in the US, likely due to the Trump Administration’s new auto tariffs. All electric vans, or PBVs, including the PV5, will be built at Kia’s Hwaseong plant in South Korea, which means they will face a stiff 25% tariff as imports.
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Following another sighting, a US debut cannot be ruled out. The PV5 Passenger model was spotted by Automotive Validation Engineer Chris Higa (@Chrisediting) while testing in Arizona.
There’s no denying that’s Kia’s electric van, but it doesn’t necessarily confirm it will launch in the US. But it could make sense.
Despite record first-half sales in the US, Kia’s EV sales have fallen significantly. Sales of the EV9 and EV6 are nearly 50% less than in the first half of 2024.
To be fair, part of it is due to the new model year changeover, but Kia is also doubling down on the US market by boosting local production. Earlier this year, Kia said the EV6 and EV9 are now in full-scale production at its West Point, GA, facility.
The PV5 Passenger (shown above) is available in Europe with two battery pack options: 51.5 kWh or 71.2 kWh, rated with WLTP ranges of 179 miles and 249 miles, respectively. The Cargo variant has the same battery options but offers a WLTP range of either 181 miles or 247 miles.
During its PV5 Tech Day event last week, Kia revealed plans for seven PV5 body types, including an Open Bed (similar to a pickup), a Light Camper, and even a luxury “Prime” passenger model.
Kia PV5 tech day (Source: Kia)
Kia is set to begin deliveries of the PV5 Passenger and Cargo Long variants in South Korea next month, followed by Europe and other global markets, starting in Q4 2025. As for a US launch, we will have to wait for the official word from Kia.
Do you want Kia to bring its electric van to the US? Drop us a comment below and let us know your thoughts.