OPEC+ oil output delay a ‘reality check’ as group eyes demand, U.S. outlook, Saudi energy min says
The OPEC+ “precautionary” decision to postpone crude production hikes until after the first quarter bides the group time to assess developments in global demand, European growth and the U.S. economy, according to the coalition’s chair, Saudi Energy Minister Abdulaziz bin Salman.
On Thursday, the oil producers’ alliance agreed to extend several output cuts, with the timeline to start gradually unwinding a 2.2-million-barrels-per-day voluntary decline undertaken by a subset of OPEC+ members pushed back by three months to April.
Several group members are delivering a second voluntary production decline, while the coalition as a whole is also restricting production under its formal policy — both now set to stretch until Dec. 31, 2026, rather than the previously penciled end of 2025.
Speaking to CNBC’s Dan Murphy on Friday, the Saudi energy minister said OPEC+ had to undertake a “reality check” and reconcile supply-demand signals with market sentiment and attend to “the fundamentals, yet put together something that mitigate these negative sentiments within, of course, the contours of what OPEC+ can do.”
Barclays analysts partly echoed the minister’s feelings, saying the alliance “maintained a cautious stance” and suggesting “market share concerns among members are likely exaggerated.”
Saudi energy minister Abdulaziz bin Salman on Oct. 5, 2022.
Bloomberg | Bloomberg | Getty Images
OPEC+ faces a spate of variables affecting the supply-demand picture and geopolitical uncertainties, ranging from economic growth amid lowering inflation to conflict in the oil-rich Middle Eastern region and the January White House return of President-elect Donald Trump — a long-time champion of the U.S. oil industry, who applied protectionist tariffs on China and sanctioned Iran for its nuclear program during his first presidential mandate.
“There are so many other things, you know, growth in China, what is happening in Europe, growth in Europe … what is happening in the U.S. economy, such as interest rate, inflation,” the Saudi energy minister said Friday.
“But honestly, the primary cause for moving, or shifting, the bringing of these ballots is [supply-demand] fundamentals. It’s not a good idea to bring volumes in the first quarter.”
The first quarter typically sees inventory build-ups due to lower demand for transport fuels.
OPEC+ member compliance
In a Friday note, analysts at HSBC assessed that the Thursday OPEC+ agreement is “marginally supportive” for supply-demand balances, reducing the projected market surplus in 2025 to just 0.2 million barrels per day, if the oil producers’ alliance proceeds with hiking production in April.
“Another delay, which we would not rule out, would leave the market broadly in balance next year,” they said. “While OPEC+’s decision to hold off strengthens fundamentals in the near term, it could be seen as an implicit admission that demand is sluggish.”
Demand has been at the forefront of OPEC+ considerations, with the OPEC’s November Monthly Oil Market Report seeing 1.54 million barrels-per-day of year-on-year growth in 2025.
The Paris-based International Energy Agency, meanwhile, last month forecast that world oil demand will expand by 920,000 barrels per day this year and just under 1 million barrels per day in 2025.
Market concerns have especially lingered over the outlook of the world’s largest crude importer, China, whose convalescent economy has received a governmental boost in recent months by way of stimulus measures.
Abdulaziz bin Salman said OPEC+ had “not necessarily” lost confidence in global crude appetite or in recoveries in China, but admitted that “what is not helpful was the fact that some [OPEC+] countries were not attending to their commitments properly.”
OPEC+ has increasingly cracked down on member compliance with individual quotas — which has in the past included the likes of Iraq, Kazakhstan and Russia — and requires overproducers to make up excess barrels with additional cuts. The deadline for these compensations is now the end of June 2026.
Oil prices have retreated despite the three-pronged extension to production hikes, with the Ice Brent contract with February expiry trading at $71.40 per barrel at 2:46 p.m. London time, down by 0.96% from the Thursday close. Front-month January Nymex WTI futures dipped to $67.63 per barrel, lower by 0.98% from the previous day’s settlement price.
“While prices are likely to stay volatile in the near term, we expect falling inventories this year and a closely balanced market next year, in contrast to market expectations for a strongly oversupplied market, to support prices over the coming months,” UBS Strategist Giovanni Staunovo said in a Friday note.
Blink Charging (Nasdaq: BLNK) has struck a deal with Hubject to make charging easier for EV drivers across North America.
The agreement will bring Blink into Hubject’s intercharge eRoaming platform as a charge point operator. That means electric mobility service providers (eMSPs) and their customers in the US, Canada, and Mexico will soon have access to Blink’s charging stations through their existing apps. In turn, Blink drivers will gain better access to stations connected through Hubject’s network.
Hubject, which already connects more than 1 million charging points and 2,750 partners worldwide, expects the integration to strengthen its North American presence by adding Blink’s wide-ranging network of chargers, from Level 2 workplace stations to DC fast charging. Blink, meanwhile, anticipates more customers will plug in, thanks to Hubject’s reach.
“Our collaboration with Blink marks an important step in expanding our North American intercharge network,” said Trishan Peruma, CEO of Hubject North America. “By integrating Blink’s network into our eRoaming platform, we aim to help reduce barriers that have historically complicated EV charging and to support the continued growth of EV adoption across the United States, Canada, and Mexico.”
Blink Charging’s president and CEO Mike Battaglia added, “Connecting the Blink Network to Hubject’s platform will allow more drivers to benefit from interoperable charging while traveling.”
The integration will use the industry-standard OCPI protocol to keep billing and communication between networks secure and reliable. Deployment is planned in phases throughout 2025, with full integration targeted for the end of the year.
Read more: Blink just made it a lot easier to find its charging stations
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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Hyundai wants to make the electric sports car for everyone. Not just those who can afford it. The new Hyundai IONIQ 5 N Essentials trim was launched in Korea on Monday, offering a lower price tag but the same thrilling drive.
Hyundai launches new IONIQ 5 N Essentials in Korea
The IONIQ 5 N is Hyundai’s first EV sports car under the IONIQ series. Initially launched in 2023, the IONIQ 5 N marked a new era for Hyundai’s high-performance N division.
Hyundai’s electric hot hatch not only looks the part with added sporty “N” branded elements scattered inside and out, but it’s also packed with fun features, advanced tech, and a host of drive modes.
Based on a dual-motor all-wheel drive (AWD) powertrain, the IONIQ 5 N delivers up to 641 horsepower when N Grin Boost is engaged. Even without it, the electric sports car packs 601 hp.
It also draws power from an 84 kWh battery, good for an EPA-estimated range of 221 miles. On the WLTP scale, it’s rated with an official range of 278 miles (448 km). The added power results in a lower range than other IONIQ 5 trims.
Although it was already one of the most affordable sports cars, EV or gas-powered, Hyundai is lowering the price even further.
After launching the new Essentials model in South Korea on Monday, Hyundai said the new trim “is characterized by lowering the barrier to entry so that customers can experience the overwhelming driving performance of the IONIQ 5 N at a reasonable price through optimized specifications.”
Hyundai focused on core convenience features while including the same high-performance motors, battery, and N-specific elements as the base model.
A Hyundai official said, “The Essential trim of the IONIQ 5 N is a new trim that offers greater cost-effectiveness to lower the barrier to entry for high-performance electric vehicles.”
The IONIQ 5 N features advanced driver assistance systems (ADAS), including highway driving assist and navigation-based smart cruise control. Hyundai has also added an exclusive new “Parking Assist Lite” package, offering safety and convenience features such as surround view monitoring and rear parking assistance.
The new Hyundai IONIQ 5 N Essentials trim starts at 74.9 million won ($54,000), including tax benefits. Hyundai said it will continue to make competitive products so more buyers can experience high-performance EVs.
Although the Essentials trim is not available in the US, the IONIQ 5 N is still more affordable than most sports cars. The 2025 Hyundai IONIQ 5 N starts at $66,200. But, with the $7,500 tax credit, which is set to expire on September 30, leases are currently listed as low as $549 per month.
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A federal judge has cleared the way for Ørsted’s nearly complete 704-megawatt (MW) Revolution Wind offshore wind farm to restart construction, overturning a stop-work order imposed by the Trump administration.
Reagan-appointed senior US District Judge Royce C. Lamberth granted a preliminary injunction in Washington, DC, calling the government’s conduct “the height of arbitrary and capricious government conduct.” He added, “If Revolution Wind cannot meet benchmark deadlines, the entire project could collapse. There is no doubt in my mind of irreparable harm to the plaintiffs.”
Ørsted welcomed the ruling and said in a statement, “Revolution Wind will continue to seek to work collaboratively with the US Administration and other stakeholders toward a prompt resolution. Revolution Wind will resume impacted construction work as soon as possible, with safety as the top priority.”
The decision marks a significant setback for the Trump administration’s attempts to stall offshore wind development. Revolution Wind is already about 80% complete, with all turbine foundations and 45 of 65 turbines successfully installed, and expected to power 350,000 homes in Rhode Island and Connecticut. Earlier this month, the two states’ attorneys general announced they were suing the Trump administration to overturn its “baseless” decision to halt Revolution Wind. That underlying lawsuit challenging the stop-work order will continue to progress.
Oceantic Network CEO Liz Burdock said, “Today’s decision allowing work to resume on Revolution Wind is welcome news for the hundreds of skilled workers who can now return to their jobs while the legal process continues. This Made in America energy project is putting Americans to work building reliable, affordable power to communities across New England that desperately need it.”
Read more: Connecticut, Rhode Island sue Trump to save 80% complete offshore wind farm
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
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