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An employee in a branded helmet is pictured at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019.

Maxim Shemetov | Reuters

U.S. crude oil declined more than 4% on Monday after Saudi Arabia slashed its prices, raising renewed worries that the market is oversupplied at the same time as demand is weakening.

The West Texas Intermediate futures contract for February lost $3.57, or 4.84%, to trade at $70.24 a barrel Monday afternoon. The Brent futures contract for March shed $3.08, or 3.91%, to $75.68 a barrel.

The sell-off comes after Saudi Aramco on Sunday sharply lowered the price of Arab Light Crude to Asian customers by $2 per barrel.

The Saudi price cut comes amid persistent market weakness due in large part to record U.S. crude production and softening demand in China. OPEC and its allies are cutting their production by 2.2 million barrels per day this quarter in an effort to balance the market.

“While it is possible that the price reduction was to maintain market share in the face of production cuts, the market is taking it as a clear sign that the economy is slowing. Maybe the landing might not be so soft,” Phil Flynn of The Price Futures Group wrote on Monday.

U.S. crude and Brent, the global benchmark, both ended the first week of 2024 more than 2% higher on mounting tensions in the Middle East, but supply and demand concerns have persistently overshadowed geopolitical risks in the market.

“The market seems to feel that geopolitical risk will not impact supply and if it does, demand is weak so it will not matter,” Flynn wrote.

Repeated attacks by Houthi militants, who are allied with Iran, on commercial vessels in the Red Sea have forced shipping giant Maersk to avoid the crucial waterway for the foreseeable future. The situation is also deteriorating in Lebanon, where a Hezbollah commander was killed Monday in an apparent Israeli airstrike.

Analysts say a regional war that draws in Iran could lead to a disruption in the Strait of Hormuz which would have a material impact on the market. So far, however, rising tensions in the region have not led to a problem in crude supplies.

U.S. Secretary of State Antony Blinken is on a diplomatic tour of the region in an effort to reduce tensions.

Though geopolitical risk is rising, the global oil market remains well supplied. The U.S. pumped an estimated 13.2 million barrels per day of crude in the last week of 2023, and its inventories of gasoline and distillate both soared by more than 10 million barrels.

U.S. crude exports also rose by more than 1 million barrels per day to 5.2 million barrels per day in the same period. Saudi Arabia is slashing prices to stop customers from buying U.S. crude as well as to undercut cheap Iranian and Russian barrels, said Bob Yawger, energy futures strategist at Mizuho.

“Obviously they’re hitting the panic button a little,” Yawger said of Riyadh. The question is what happens if the Saudi strategy does not work, he said.

“You’re getting closer and closer to a 2020 situation here where they try to claw back market share by cutting everything to bare bones minimum and sparking a price war,” Yawger said.

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Toyota says RAV4 is ‘100% electrified’ in 2026, but every one has a gas engine

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Toyota says RAV4 is '100% electrified' in 2026, but every one has a gas engine

Toyota USA has refreshed its RAV4 for 2026, and, in a significant step forward for efficiency, Toyota has axed the non-hybrid version of the vehicle. The RAV4 will now only be available in HEV and PHEV versions starting in the 2026 model year.

However, in an act of greenwashing reminiscent of many things Toyota has done before, it’s confusingly calling its vehicles “100% electrified” – despite that every single RAV4 includes a gas engine.

The improvements include new looks and trim lines, including an outdoorsy Woodland model (like the bZ just got) and a higher-performance “GR SPORT” model (though, we must remind everyone, that SUVs are not sportscars and will never be sportscars), and higher power from both PHEV and HEV models.

The PHEV model also boasts improved range, bumped from 42 miles to 50 miles – still lower than we’d typically consider worthy of coverage on Electrek, but the number is at least usable to keep the average driver on electric power for most of their daily driving (if they bother to plug it in).

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Some trims will have DC fast charging, and you’ll be able to charge from 10-80% in 30 minutes.

Notably, the RAV4 no longer includes any option for a non-hybrid powertrain. All trims are either hybrid or plug-in hybrid. Previously, it had been anticipated that an EV model might join the lineup, but it looks like Toyota is just sticking with the newly-renamed bZ model for that purpose.

Toyota calls its new RAV4 options “highly efficient electrified powertrains,” but did not specify anticipated EPA mileage numbers for the HEV model, or for the PHEV when operating on gas power. The current RAV4 hybrid gets 39mpg (that’s about 10mpg better than the non-hybrid), and we would imagine something in that ballpark for the updated model.

The 2026 RAV4 will be available in Toyota dealerships across the US “later this year.” Pricing has not yet been announced.

Electrek’s Take

But the real issue here is the use of the word “electrified,” and specifically, “100% electrified.”

Toyota has a long history of deceptive advertising when it comes to its electrification efforts. Its lies have gotten it in trouble before, both in Norway and in the US.

Toyota is also the largest auto industry funder of climate denial, and has consistently ranked as the worst auto industry lobbyist on climate policy worldwide.

So its use of the word “electrified” should be looked at with some skepticism, since the company has used it before to confuse consumers into thinking that its vehicles are more efficient than they really are. For some previous coverage on that, see the FTC complaint filed against Toyota over its false electrification claims.

In this case, Toyota has upped the ante, not just claiming that its vehicles are electrified, but “100% electrified.”

There are a lot of terms that get used confusingly in the EV industry, oftentimes purposefully, in order to greenwash companies’ efforts. EV, PHEV, EREV, FCEV, HEV, BEV, electrified, all-electric, and so on.

But one thing that has heretofore been reserved for models that do not include a gasoline engine is any variation on “all-electric,” “100% electric,” “fully electric” or the like.

So, moving from “electrified” to “100% electrified” certainly seems like intentional phrasing by Toyota here. “Electrified” was already questionable, but “100% electrified” is well over the line.

So despite that we should be happy about a step-change improvement in powertrain availability on the RAV4, and the elimination of the non-hybrid model, Toyota just had to play one of its tricks and remind us why they’re the greatest enemy of electrification in the auto industry (well… save one).


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Elon Musk says AI could run into power capacity issues by middle of next year

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Elon Musk says AI could run into power capacity issues by middle of next year

Elon Musk interviews on CNBC from the Tesla Headquarters in Texas.

CNBC

Elon Musk said Tuesday that artificial intelligence development could run into power generation problems by the middle of next year, as the technology industry builds increasingly large data centers.

Musk told CNBC in an interview that his artificial intelligence startup xAI is planning a gigawatt-size facility outside Memphis, Tenn. He said the facility would be complete in six to nine months. A gigawatt is equivalent to the power capacity of the average nuclear plant in the U.S., according to the Department of Energy.

Musk said AI faces three major limitations as it scales up: chips, transformers and power generation. Transformers are used to ramp down the voltage of electricity produced by power plants so it can used by computers.

“As we solve the transformer shortage, there will be the fundamental electricity generation shortage,” Musk told CNBC’s David Faber. “My guess is people are going to start hitting challenges with power generation maybe by the middle of next year, end of next year.”

Watch part 2 of CNBC's interview with Tesla CEO Elon Musk

Alphabet’s Google unit warned in February that the U.S. is facing a power capacity crisis as the U.S. races against China to achieve dominance in AI. Google started looking into nuclear energy after realizing renewables were potentially causing instability on the grid, said Caroline Golin, Google’s global head of energy market development. The output of wind and solar is dependent on weather conditions.

Google ran into a “very stark reality that we didn’t have enough capacity on the system to power our data centers in the short term and then potentially in the long term,” Golin said at a February conference hosted by the Nuclear Energy Institute in New York City.

Musk said Tuesday that China is building significantly more power generation than U.S. “China power generation looks like a rocket going to orbit and U.S. power generation is flat,” the Tesla CEO said.

Musk’s xAI is using natural gas turbines to help power its Colossus data center in Memphis. Environmental advocates have accused xAI of violating the Clean Air Act and permitting requirements for “major sources of air pollution” by using gas turbines without mitigation technologies or permits in place.

Utilities such as Dominion Energy told investors on recent earnings calls that they are not seeing evidence of slowing data center demand, despite anxiety in the market that the tech sector might cut back on concerns about of a possible recession. Dominion serves the largest data center market in the world located in northern Virginia.

But Constellation Energy cautioned that although demand is strong, some of the forecasts by utilities are overstated as developers shop their data centers in multiple jurisdictions. Constellation is the largest operator of nuclear plants in the U.S.

“I just have to tell you, folks, I think the load is being overstated,” CEO Joe Dominguez said on the power company’s first quarter earnings call. “We need to pump the brakes here.”

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Hyundai is temporarily halting IONIQ 5 and Kona EV production in Korea

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Hyundai is temporarily halting IONIQ 5 and Kona EV production in Korea

Hyundai is shutting down a production line at its Ulsan plant in Korea, where the IONIQ 5 and Kona EV are built. Although it’s only for a few days, the move comes as the automaker faces slower exports.

Why is Hyundai pausing EV production in Korea?

For the third time this year, Hyundai is planning to pause production of some of its most popular EV models in Korea.

Industry sources said on May 20 (via Newsis) that Hyundai will shut down Line 2 at its Ulsan plant in Korea, where it builds the IONIQ 5 and Kona Electric. The pause will start on May 27 and end on May 30.

Despite launching a new discount campaign in Korea earlier this month, offering over $4,300 (6 million won) in savings on the IONIQ 5, sales are still lagging. In particular, Hyundai has exported significantly fewer IONIQ 5 models this year.

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Through April, Hyundai exported just 9,663 IONIQ 5s, down from 27,476 sold overseas in the same period last year.

Kona EV exports have also fallen sharply. Through April 2025, Hyundai shipped just 3,428 Kona EV models, down 42% from nearly 6,000 last year.

Hyundai-EV-production-Korea
Hyundai IONIQ 5 refresh in Korea (Source: Hyundai)

According to the report, Hyundai said in an internal note, “The sluggish sales in the global electric vehicle market have not improved,” adding, “We have made every effort to secure additional orders, but we are currently unable to secure the quantity.”

Following a temporary halt in February and April, this will be Hyundai’s third time pausing EV production in Korea this year.

Hyundai-EV-production-Korea
Hyundai Kona Electric N Line (Source: Hyundai)

In a turn of events, Hyundai’s joint venture in China, Beijing Hyundai, announced losses improved by over 100 million won ($72 million) in Q1. With its first custom-tailored electric SUV launching in China later this year, Beijing Hyundai could turn a profit by the end of 2025.

The Korean automaker reported its seventh consecutive record sales month in the US. The IONIQ 5 remains a top seller with over 12,000 units sold through April, up 14% from last year.

Hyundai-IONIQ-9-EV
Hyundai IONIQ 9 three-row electric SUV (Source: Hyundai)

IONIQ 6 sales, on the other hand, are down 10% this year, with 4,424 sold through April, and Hyundai doesn’t give a breakdown for Kona EV sales.

Hyundai is also offering generous discounts in the US right now with up to $12,500 in upfront savings on the new three-row IONIQ 9. The 2025 IONIQ 5 is a steal with leases starting at just $209 per month.

Ready to try out Hyundai’s electric vehicles for yourself? We’ve got you covered. You can use our links below to find popular Hyundai EV models in your area.

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