Oil prices steady as IMF raises growth forecast, market braces for U.S. response to drone attack
Oil prices held steady Tuesday after the International Monetary Fund raised its global growth forecast for the year and as the market waited to see how the U.S. will respond to a deadly drone attack on its forces in the Middle East
The West Texas Intermediate contract for March gained 39 cents, or 0.51%, to trade at $77.16 a barrel. The Brent contract for March rose 5 cents, 0.06%, to trade at $82.45.
The two benchmarks were down more than 1% earlier in the session after Hamas said it was studying a proposal to pause fighting in Gaza for the release of more hostages, in a sign that diplomacy to de-escalate the war might be gaining steam.
Oil prices declined more than 1% on Monday as China’s real estate crisis raised worries about demand in the world’s second-largest economy.
“The ramifications of a possible collapse in the China’s property sector makes moot any authority stimulus and will have very negative global shockwaves,” John Evans with the oil broker PVM wrote in a note.
Crude prices gained Tuesday after the International Monetary Fund on Tuesday raised its forecast for the global economy on unexpectedly strong growth in the U.S. and stimulus in China. The IMF forecast growth of 3.1% this year, an increase of 0.2 percentage points from its October projection.
Traders are also monitoring how the U.S. will respond to a drone strike that killed three of its troops in Jordan Sunday. President Joe Biden held Iran-allied militants in Syria and Iraq responsible for the attack.
Biden said the U.S. would hold those “responsible to account at a time and in a manner our choosing.” Defense Secretary Lloyd Austin said the Biden administration “will take all necessary actions to defend the United States, our troops, and our interests.”
Yet National Security Council spokesperson John Kirby seemed to play down the possibility of a direct confrontation between Iran and the U.S.
“We’re not looking for a war with Iran,” Kirby told reporters at the White House Monday. “We’re not looking to escalate the tensions any more than they already have been escalating.”
Iran has denied any involvement in the attack.
Retired U.S. Navy Admiral James Stavridis, former NATO Supreme Allied Commander, said surgical strikes are not deterring Iran-allied militants. The Biden administration will likely launch a broader campaign that falls short of a full-blown war, Stavridis said.
“You’re going to see a week or two of heavy attacks, but not in Iran itself, against Iranian proxies,” Stavridis, global affairs vice chair at the Carlyle Group, told CNBC’s “Squawk Box” Tuesday.
“Probably Iraq, Syria and Yemen would be the three places you’re going to see the administration lean in over the next week or two,” Stavridis said.
The oil market’s response to geopolitical tensions in the Middle East has been muted, though analysts say a conflict between Washington and Tehran is a scenario that would likely send prices higher.
Stavridis said the death of three U.S. service members has raised the odds of a broader conflict, though he noted that neither Washington nor Tehran want a wider war.
White House energy security advisor Amos Hochstein said disruptions to shipping in the Red Sea due to attacks by Iran-allied Houthi militants are “entirely manageable.” An oil tanker was hit by a Houthi missile in the Gulf of Aden on Friday in the latest escalation.
“It’s just a matter of re-routing the cargos and the tankers but not really affecting oil prices or any of the other commodities and other cargo shipping,” Hochstein told “Squawk on the Street” Tuesday.
There has been a huge increase in crude supply from the U.S., Brazil and Guyana while global demand is largely holding steady, he said.
“At the end of the day, the fundamentals are that demand and supply are well balanced,” Hochstein said.
The US Department of Energy (DOE) today announced $1.2 billion in financing to replace Puerto Rico’s fossil fuel plants with solar and battery storage through 2032.
The DOE’s Loan Programs Office announced two conditional commitments and one loan closing to power producers in Puerto Rico. Each supports a project contracted with the Puerto Rico Electric Power Authority. The announcements include:
- The closing of a $584.5 million loan guarantee to subsidiaries of Convergent Energy to finance a 100 MW solar farm with a 55 MW (55 MWh) battery energy storage system (BESS) in the municipality of Coamo and BESS installations in the municipalities of Caguas (25MW/100MWh), Peñuelas (100MW/400MWh), and Ponce (up to 100MW/400MWh)
- A conditional commitment for a loan guarantee of up to $133.6 million to a subsidiary of Infinigen for a 32.1 MW solar farm with an integrated 14.45 MW (4.76 MWh) BESS, and a co-located standalone 50 MW (200 MWh) BESS expansion in the municipality of Yabucoa
- A conditional commitment for a loan guarantee of up to $489.4 million to a subsidiary of Pattern Energy for three stand-alone BESS in the municipalities of Arecibo (50 MW/200 MWh), and Santa Isabel (50 MW /200 MWh and 80 MW/320 MW), and a 70 MW solar farm with an integrated BESS in the municipality of Arecibo.
If all are finalized, these projects would more than double LPO’s support for utility-scale solar generation and battery energy storage in Puerto Rico.
LPO provides low-cost financing and a rigorous due diligence process, making it a valuable resource for Puerto Rico as it works to rebuild an affordable, reliable, and clean energy system. As a result of reliance on imported fuel, the persistent threat of tropical storms, and underinvested infrastructure, Puerto Ricans today face average energy costs that are twice the US average – all while consuming only one-quarter of the energy of the US per capita.
LPO’s initial loan to a power producer in Puerto Rico, Project Marahu, closed in October 2024, and when complete will add more than 200 MW of solar and up to 285 MW of stand-alone energy storage to Puerto Rico’s grid.
Through its September 2023 partial loan guarantee to Project Hestia, LPO also supports virtual power plant (VPP)-ready rooftop solar and battery storage installations in Puerto Rico. As a nationwide project, Hestia’s sponsor is committed to at least 20% of installations under Project Hestia going to homeowners in Puerto Rico.
As part of its procurement plan, Puerto Rico Electric Power Authority seeks to install 1,500 MW of battery storage and requires a minimum capacity of storage to be co-located with each utility-scale solar project. Energy storage systems currently online in Puerto Rico are being dispatched every day.
When including Marahu, LPO’s closed and conditionally committed financing supports over 100% of the capacity Puerto Rico Electric Power Authority aimed to procure under its initial request for energy storage project proposals, the first of six.
Read more: Cleantech investments to top fossil fuels for the first time in 2025
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Chevy just introduced new deals on the Equinox and Blazer EV models to make them even more affordable. With 0% interest and a new trade-in bonus, Chevy is offering over $5,000 in savings.
Chevy adds new Equinox and Blazer EV deals in January
Although the Chevy Equinox EV is already “the most affordable” EV in its class with over 315 miles range, it’s getting even cheaper.
Earlier this week, Chevy launched new deals on the 2024 Equinox and Blazer EV models. According to a note sent to dealers, viewed by CarsDirect, the electric SUVs are now available with 0% APR financing for 60 months. You can also choose from 0.9% AP for 72 months and 2.9% APR for 84 months.
This marks the best financing offer on Chevy’s newest EVs to date. The previous best rates were 0.9% APR for 60 months, 3.9% for 72 months, and 5.9% for the longer 84-month option.
On a 7-year $45,000 loan, online auto research firm CarsDirect estimates the new deals amount to around a $5,200 price cut. The lower APR rates are already offered on the Chevrolet Silverado EV pickup.
In addition, Chevy is offering a trade-in bonus of up to $3,000 on the Silverado EV and $1,000 on the electric Equinox and Blazer models. If you choose to lease, the bonus is cut in half: $1,500 for the Silverado and $500 for the electric SUVs.
Chevy’s new EV deals started on January 14 and run through March 3, 2025. The deals come as rivals like Hyundai and Ford recently launched new EV promotions.
On Thursday, Hyundai launched a new promo on the upgraded 2025 IONIQ 5, which includes monthly leases as low as $199 and a free ChargePoint home EV charger (or $400 charging credit). Meanwhile, Ford extended its “Power Promise” program earlier this month, which also includes a free home charger, among several other benefits.
The 2024 Chevy Equinox EV started at $41,900 with up to 315 miles range. Prices for the electric Chevy Blazer start at $43,690 with up to 279 miles range.
If you are ready to try out Chevy’s new electric SUVs for yourself, we’ve got you covered. You can use our links below to view offers on the Chevy Equinox, Silverado, and Blazer EV models near you.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss non-Tesla EVs getting Supercharger access, Cybertruck sales in the spotlight, Rivian getting some money from Biden, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):
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