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.
On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.
Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.
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Read more: All my favorite EVs, racecars, and robots from Electrify Expo Austin.
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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.
Read more: The US reaches milestone of 200,000+ public EV charging ports
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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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