DONGYING, CHINA – NOVEMBER 15: An aerial view of tugboats push the crude oil tanker ‘VESNA’ from Singapore to a reception terminal of Dongying port on November 15, 2023 in Dongying, Shandong Province of China. (Photo by Zhou Guangxue/VCG via Getty Images)
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Oil prices are on pace for a weekly gain as U.S. economic growth and stimulus in China raise hopes for more robust crude demand this year.
The West Texas Intermediate contract for March fell 90 cents, or 1.16%, to trade at $76.46 a barrel Friday morning, while the Brent contract for March dropped 71 cents, or 0.86%, to trade at $81.75 a barrel.
U.S. crude and the global benchmark, however, are poised to post a weekly gain of more than 4%. WTI and Brent are up 7% and 6.3%, respectively, for the year so far.
The U.S. reported stronger-than-expected economic growth in the fourth quarter of 3.3%, compared to 2% expected by Wall Street. China, meanwhile, is loosening reserve requirements for its bank in an effort to boost growth amid concerns that its economy is faltering.
“The two largest oil consumers in the world could likely have some pretty strong demand this year,” Robert Thummel, portfolio manager at Tortoise, told CNBC.
The potential for more robust demand comes as crude supply fell in the U.S. due to winter storms. Crude inventories fell by 9.2 million barrels last week as production dropped by 1 million barrels per day, according to data from the Energy Information Agency.
Oil Prices Today
There were also indications that a truce in Gaza is in the works. If that occurs, it could ease the geopolitical risk in the Middle East that typically bolsters crude prices.
The White House plans to dispatch CIA director William Burns to help negotiate a two-month truce in the war in exchange for the release of all remaining hostages by Hamas, officials familiar with the matter told the Washington Post. But one of the officials told the paper that Hamas has rebuffed the proposal and demanded a permanent ceasefire in exchange for the hostages.
“An obstinate Israel, which refuses to effectively discuss truce, let alone a sustainable peace plan unless Hamas is obliterated will ensure continuous shipping disruptions in the Red Sea,” Tamas Varga, with oil broker PVM, wrote in Friday note.
Houthi militants in Yemen have continued to target shipping in the Red Sea despite U.S. airstrikes. China has asked Iran to rein in the attacks by the Houthis or risk harming business with Beijing, four Iranian sources and a diplomat familiar told Reuters.
A suspected Ukrainian drone attack on Russian fuel terminal on the Baltic Sea last weekend also highlighted the ongoing geopolitical threats to fuel supplies.
“It provided invaluable help for an upside break out of the recent trading range handing the momentum over to those with bullish propensity,” Varga said of the drone attack.
The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.
The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.
These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.
The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.
Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:
Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.
In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.
The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.
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Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.
The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.
During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.
Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.
The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.
Kia’s new EV4 is now testing in the US
Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.
The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.
Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).
Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.
The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.
Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.
We will learn official prices closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.
Kia is teasing five new vehicles for the US, at least one being a new EV, that will debut at the LA Auto Show next week. Will it be the EV3? EV4?
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Nissan introduced its newest EV, a sleek all-electric sedan, at the Guangzhou Auto Show this week. The N7 is the first Nissan electric vehicle under its new strategy to spark life back into the brand in China.
Nissan hopes new N7 EV can compete in China
Like most foreign automakers, Nissan is struggling to stay afloat in China as homegrown automakers, like BYD, take control of the market.
Nissan hopes to turn things around after Dongfeng Nissan, its Chinese JV, unveiled the new N7 EV sedan at the Guangzhou Auto Show on Wednesday. The N7 is the first next-gen Nissan EV aimed at China as it looks to regain ground in the world’s largest electric car market.
Nissan claims the new model will “redefine the new benchmark for China’s mainstream family pure electric sedans.” It will be the first model built on Dongfeng Nissan’s new dedicated EV platform.
The company promises the new platform offers “a stress-free driving experience, superior comfort, and a suite of intelligent technology.”
At 4,930 mm long, 1,895 mm wide, 1,487 mm tall, with a wheelbase of 2,915 mm, the N7 is slightly longer than the Tesla Model 3 (4,720 mm long, 1848 mm wide, 1,442 mm tall, 2,875 mm wheelbase).
You can see Nissan’s signature V-Motion design in the headlights and front bumpers. Inside, the N7’s infotainment system is powered by a Qualcomm Snapdragon 8295p processor for a faster, seamlessly connected system.
Nissan also partnered with smart driving tech leader Momenta to offer an advanced driver-assist system called “Navigate on Autopilot.” The N7 will be equipped with high-speed navigation NOA, city memory navigation NOA, and full-scenario intelligent parking.
The new N7 EV is set to go on sale in China in the first half of 2025 as Nissan aims to regain relevancy. Nissan’s sales in China fell 5.4% through the first nine months of 2024 after crashing 33% in 2023.
Will the N7 help Nissan reignite the brand in China, or will it continue losing ground to domestic auto brands like BYD and NIO? Let us know what you think of the electric sedan in the comments below.
Nissan isn’t the only legacy automaker developing specific EVs for China. Hyundai is launching a new AI-powered EV in China next year as it looks to counter China’s surge.
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