U.S. crude prices continued to fall Wednesday, settling below $70 per barrel for the first time since early July and at their lowest levels since June. That’s good news for the Federal Reserve in its battle against inflation. While the impact on oil and natural gas stocks has not been as cheery, companies across many other industries stand to gain. At session lows, West Texas Intermediate crude dropped more than 4% Wednesday afternoon to just over $69 a barrel. The U.S. oil benchmark has been drifting lower since late September when WTI settled at its highest levels of the year — at nearly $94 per barrel. Energy , meanwhile, has been the only sector in the S & P 500 in the red since the fourth quarter began Oct. 1 — down about 10.7% compared with the broad market index’s 6% advance. Our only remaining oil and nat gas holding, Coterra Energy (CTRA), has also struggled — losing more than 8% quarter to date, including Wednesday’s more than 2% drop. However, more than two-thirds of our stock portfolio has been higher so far in the fourth quarter. “Oil is the key to this market. If it doesn’t hold $70, I don’t know where the thing goes,” Jim Cramer said earlier Wednesday. “But, boy, is it going the way of the Fed.” In its effort to cool inflation, the central bank has been tightening monetary policy since late 2021 and began aggressively raising interest rates in March 2022. Since then, the fed funds overnight bank lending rate has risen from near-zero to the current range between 5.25% and 5.5%. In early 2023, lower year-over-year oil prices helped slow the rate of consumer inflation, which reached its Covid-era peak at 9.1% in June 2022 . But, as oil climbed higher in the summer and into late September, concerns mounted that crude was once again becoming a thorn in the Fed’s side. With recent data pointing to cooling inflation, including falling energy prices, the market is trying to decide if the Fed’s rate-hiking cycle is done. The odds favor a rate cut as early as the Fed’s policy meeting in March, according to the CME FedWatch tool . @CL.1 YTD mountain The year-to-date performance of West Texas Intermediate crude futures. Oil impacts inflation data in more than just the gasoline prices paid by consumers at the pump. It also figures into corporate transportation and freight costs. If those input costs stay consistently higher, companies may choose to raise prices on the goods they’re making and shipping to protect profit margins. That will eventually show up in inflation readings — and, in theory, require the Fed to keep making policy decisions designed to slow the U.S. economy. The other side of the coin is that lower oil prices can be a boon to both consumers and companies, including those in Jim’s Charitable Trust, the portfolio we use for the Club. The less money people need to spend to fill up their gas tanks, the more cash they have available to spend on other goods and services — a positive for the economy. Similarly, lower fuel costs can help cushion companies’ profit margins — a positive for their investors and the stock market, more broadly. To be sure, falling crude prices can be worrisome if the decline is tied to a dramatic slowdown in economic activity. In a recession, demand would weaken for not just oil, but many other products sold by companies, too. The current picture on this point is not exactly black and white. For starters, oil production in the U.S. has been hovering around record levels , leading to a robust supply landscape even after oil cartel OPEC+’s latest production-reduction effort in an attempt to shore up prices. There are some fears about demand in China, the world’s second-largest economy. Economic activity in the U.S. also is slowing, but so far not in a manner that is troubling or suggests a severe recession is around the corner. To date, consumer spending and employment data have remained relatively resilient, while inflation is gradually cooling and oil prices are retreating. It’s possible upcoming economic reports could begin to scramble this picture — starting with Friday’s November jobs report — and eventually prompt us to read the oil market differently. At this point, the weakness in crude prices is a win for the Fed and large swaths of the Club’s portfolio, particularly a company like Amazon (AMZN) that benefits when consumers have more money to spend on its online marketplace and when its costs to deliver those products come down. It’s also led investors to sell Coterra Energy’s stock. Lower oil prices will hinder Coterra’s free cash flow , which the company returns to shareholders through stock buybacks and dividend payouts. Those are key reasons investors, including us, own the stock. We’re hardly panicking, though. In fact, we used Wednesday’s declines to add to our position in Coterra , which now holds a roughly 2% weighting in our portfolio. The fact that Coterra has fallen out of favor is precisely why we want to buy. Coterra, which has significant oil and natural gas exposure, can make plenty of money at current commodity prices. Plus, the company has done a commendable job managing its expenses this year — and encouragingly, expects to see service cost deflation in 2024. In other words, Coterra is controlling what it can. The price of oil is not one of those things. (Jim Cramer’s Charitable Trust is long CTRA and AMZN. 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.
An oil rig in front of a sunset
Andrey Rudakov | Bloomberg | Getty Images
U.S. crude prices continued to fall Wednesday, settling below $70 per barrel for the first time since early July and at their lowest levels since June. That’s good news for the Federal Reserve in its battle against inflation. While the impact on oil and natural gas stocks has not been as cheery, companies across many other industries stand to gain.
With the winter in full swing, it’s easy to spend most of the time indoors, but if you’re still looking to scratch that itch to get out and spend more time outside exploring, the XQi3 by NIU is the perfect solution to explore both trails and urban spots. On top of NIU designing the XQi3 with some great handling for off-road riding, it’s also fully street-legal.
It’s always a blast to be out in the trails enjoying nature but for urban areas, there’s usually a lot to explore and luckily the XQi3 is able to be registered as a moped. NIU has an EKHO Dealer collab that enables NIU to sell licensed and registered vehicles to customers directly, making it easy to ride off with a fully compliant street-legal bike.
Before we get into how it handles off-road let’s go through some of the quick specs.
The XQi3 has a top speed of 45 km/h for street-legal use and up to 80 km/h for off-road. Powering the bike is a removable 72v 32ah LG lithium-ion battery, which gives you a max range of 90km on a single charge, of course, that will vary depending on if you are in eco or sports mode, but it’s certainly plenty of range to explore new trails or new sites without having range anxiety, and since it is removable, you’ll be able to charge it anywhere, anytime.
Okay, now that we got some of those specs out of the way, it’s time to dive into one of the most exciting aspects about this bike which is just how great the handling feels while riding off road. This probably won’t be listed on a spec sheet but the wide grippy seat and overall design of this bike makes it very functional as an offroad bike.
NIU made this bike for riders to actually use offroad and one of the obvious signs of that is the stock skidplate that they added for more protection.
While the lightweight feel and torquey motor give a ton of confidence while riding, knowing that the bike is robust enough for this kind of riding is encouraging for trying out new sections that would normally feel intimidating.
And with that extra level of protection dropping the bike is not as worrying as you might think making it easy to pick up the bike, and continue riding just as you would on any other powersports bike.
As for the suspension the XQi3 uses adjustable front and rear KKE suspension that lets you fine-tune the compression, rebound, and preload depending on your size and what kind of riding you intend to do.
While riding through roots and loose dirt the 19-inch off-road tires hold up surprisingly well and with the tread patterns not being too aggressive it’s a great balance between traction and durability since very aggressive tread patterns typically wear out fairly quickly when using them on the tarmac.
And to brake the XQi3 features 203 mm rear disc brakes and 220 mm front disc brakes giving some great braking action for both on and off-road action.
NIU also added some great tech onto the XQi3 which includes seamless app connectivity via Bluetooth letting you unlock a world of features from monitoring your battery and vehicle status to tracking your route history.
In addition NIU is the only company in the category that has the ability to send out OTA updates.
For security the bike uses an NFC card to unlock but can also be unlocked via bluetooth.
And through your controls as well as the display you can navigate to eco or sport mode and you can also use the Ultraboost to get you up to 8000W up from the 3500W of rated power. Through the display you’ll also be able to check your battery level, speed, lap times and more.
For added safety, NIU included an emergency kill switch where if disconnected, the feature will automatically cut off power to the motor just in case of any emergency.
For those unfamiliar with NIU, the brand is now celebrating their 10 year anniversary and with that they’ve announced that the brand will be starting assembly in the US and is soon entering into the powersports segment .
Overall this is a great feeling offroad bike that is fully street-legal and comes with all the requirements to be fully compliant as a road-legal moped. I had a ton of fun exploring
With the XQi3, the premium build quality, long range, and flexibility make it a blast to go out even if it’s the middle of winter.
To check out NIU on socials you can find them @niumobility and for more of their lineup you can check out their website here.
NIU XQi3 gallery
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British telecom provider BT Group has committed to adding 3,500 new EVs to its commercial truck and van fleet over the next two years, bringing its total EV count to 8,000 units and giving it the largest electric vehicle fleet in the UK.
With more than 27,000 in its total fleet, BT Group is one of the largest operators of commercial vehicles of any kind – ICE or electric – in the UK. Now, the company says it has plans to become a fully net zero business by 2031, and looks to electrify all (or nearly all) of its vehicles over the next five years.
Company executives believe the addition of the new EVs (which will see a mix of vehicles deployed from Ford, Stellantis, Toyota, and Renault) will give it “the edge” as it aims to upgrade UK residents to full fiber internet.
“By integrating yet more electric vehicles into our operations, we are taking another significant step towards reducing our carbon footprint and supporting the UK’s transition to a greener future,” said Simon Lowth, Chief Financial Officer, BT Group. “As we extend our full fiber build from 16 million homes and businesses today to 25 million by the end of 2026, having the most efficient, sustainable electric vehicles will give our engineers the edge as they connect customers at pace to our next generation networks.”
As such, political supporters of the ban have been quick to sing BT Group’s praises. “We want to help more businesses decarbonize their operations,” explains Lilian Greenwood, Future of Roads Minister. “(We’ve) extended our plug-in van grant with £120m funding to help roll out more zero emission vans on our roads – part of our £2.3bn to support industry and consumers switch to EVs and make the transition a success.”
Schneider electric semis charging in El Monte, CA; via NACFE.
In a move that’s expected to play a crucial role in supporting the transition to medium- and heavy-duty electric vehicles, $100 million of the Biden Administration’s last-minute $635M payout is headed to Illinois to help build out an electric truck charging corridor.
Tesla is understood to have requested fully 40% of the $100MM award, with Prologis requesting $60 million, Gage Zero requesting $16 million, and Pilot requesting $10 million.
The project will facilitate the construction of 345 electric truck charging ports and pull-through truck charging stalls across 14 sites throughout Illinois, with each of the awarded companies putting up some of its own money to support the infrastructure buildout as well. To that end, Prologis is expected to invest $18 million, Tesla $19 million, Gage Zero $4 million, and Pilot travel stations committing $2.5 million.
“Most of the development has happened on the coasts, and there’s nothing really happening in the Midwest, which is not great for long-haul trucking,” said Megha Lakhchaura, Illinois’ state EV officer. “We think that this hub could be of national importance.”