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A refinery from the north of the Persian Gulf in Iran. 

Saeid Arabzadeh | Afp | Getty Images

Oil prices could soar to $100 per barrel and beyond, said market watchers, after Iran mounted an aerial attack against Israel reigniting fears of a regional war.

Iran is home to vast oil resources and is the third-largest producer in oil cartel OPEC. Any disruption in its capacity to supply global markets could send oil prices higher, analysts told CNBC. Markets will also closely monitor for developments or closure of the Strait of Hormuz, a key chokepoint which sits between Iran and Oman and through which one-fifth of global oil production flows daily.

“Any attack on oil production or export facilities in Iran would drive the price of Brent crude oil to $100, and the closure of the Strait of Hormuz would lead to prices in the $120 to $130 range,” said Andy Lipow, president of Lipow Oil Associates.

Iran fired over 300 drones and missiles on Israel on Saturday night, marking the first instance Iran launched a direct military attack on the Jewish state. A “vast majority” of the Iranian drones and missiles were intercepted, according to Israel Defense Forces spokesperson Rear Adm. Daniel Hagari. He said a 10-year-old girl was “severely injured by shrapnel,” but that there were no other casualties.

Insufficient investment makes supply more fragile and increases the chance of a super spike well above $100 if supply is disrupted.

Josh Young

portfolio manager at Bison Interests

Iran’s attack was in retaliation to an Israeli strike on its consulate in Damascus, Syria earlier this month. Iran accused Israel of bombing part of its embassy compound on April 1, killing seven Iranian military personnel, including three senior commanders.

Iran’s United Nations mission declared that following the aerial attack, the “matter can be deemed concluded.” It warned, however, that its response would be “considerably more severe” should there be further Israeli retaliation.

Compounded by underinvestment

Oil prices traded slightly lower in early morning trading in Asia. Global benchmark Brent slipped 0.31% to $90.17 a barrel Monday, while U.S. West Texas Intermediate futures fell 0.44% to trade at $85.28 per barrel.

Compounded by years of underinvestment in oil exploration and development, the recent geopolitical development renders global crude supplies more vulnerable, said Josh Young, portfolio manager at oil and gas investment firm Bison Interests.

“Insufficient investment makes supply more fragile and increases the chance of a super spike well above $100 if supply is disrupted,” he said.

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Oil prices since the start of the year.

“I think oil prices will go to all time highs this cycle, due to a decade of under-investment in exploration and development,” Young added.

Oil faces a sizable natural decline in output. The decline rate for a conventional oil well is around 15%, absent any capital expenditure, according to Morgan Stanley’s estimates.

Oil prices have climbed in recent months on trade disruptions and delays caused by Red Sea maritime attacks from the Houthis, who claim solidarity with the Palestinian people.

Ramping up sanctions against Iran?

A dominant force in Middle East politics, Iran funds and supports groups opposing Israel, such as Palestinian militant group Hamas, Lebanon’s Hezbollah, Yemeni Houthis and Bashar al-Assad’s Syrian administration. The ongoing conflict in Gaza has often been referred to as a proxy war between Israel and Iran

U.S. President Joe Biden condemned Iran’s attack on Israel, adding that Washington helped “take down nearly all of the incoming drones and missiles.”  

“Our commitment to Israel’s security against threats from Iran and its proxies is ironclad,” Biden also said separately on social media platform X. But he also told Israel’s Prime Minister Benjamin Netanyahu that the U.S. will not participate in offensive operations against Iran, a senior administration official told NBC News.

If Iran further escalated hostilities, the U.S. and its allies would come under “renewed pressure to strengthen sanctions once again,” Betashares’ chief economist, David Bassanese, wrote in a note following the attack.

Iranian oil exports have lifted over the past few years with the U.S. “seemingly passively accepting this as a means to keep downward pressure on world oil prices,” he added.

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Is this the interior of Tesla’s upcoming ‘Robotaxi’?

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Is this the interior of Tesla's upcoming 'Robotaxi'?

Tesla has released a new video that includes some footage of a previously unseen vehicle interior. Could it be an early concept of the interior of the Robotaxi?

For the last few years, Tesla has been working on a vehicle designed from the ground up to be a self-driving vehicles. The company has been referring to it as ‘Robotaxi’.

CEO Elon Musk insists that Tesla is still dedicated to delivering its promised self-driving capability to existing vehicles delivered since 2016 through software update, but it also decided to build a new vehicle designed entirely around the fact that it will be driverless.

Not much is known about the vehicle other than hints that it won’t have a steering wheel or pedals, and that it will be “Cybertruck-like” in terms of design.

Now, Tesla has released a new video, which Musk wanted to make clear he wasn’t involved in, to try to encourage shareholders to vote for his $55 billion compensation package and moving the company’s state of incorporation to Texas:

In the video, many pointed out a shot of the interior of a vehicle that doesn’t match anything Tesla has released to date:

The image shows what appears to be a two-seater vehicle without steering wheel and a center display similar to what is found in current Tesla vehicles.

The seats are unlike what you would find in modern vehicles and something closer to what you would find in public transit, like a train:

Tesla plans to unveil its ‘Robotaxi’ on August 8th. The automaker has recently accelerated its timeline for the vehicle and plans to bring it to market as soon as next year.

Do you think this is an early concept for the Tesla Robotaxi interior? Let us know in the comment section below.

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Mercedes-Benz just opened more DC fast chargers at Buc-ee’s in Texas

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Mercedes-Benz just opened more DC fast chargers at Buc-ee’s in Texas

Mercedes-Benz High-Power Charging just opened more DC fast chargers at Buc-ee’s stores in the Dallas-Forth Worth area.

Three new Mercedes DC fast charging stations are at Buc-ee’s in Fort Worth, Temple, and Royse City. Mercedes asserts that every one of its chargers offers up to 400 kW of power.

It’s also adding 12 more charging stations at Buc-ee’s in the Dallas-Fort Worth, San Antonio, and Houston metro areas – also known as the Texas Triangle, home to 68% of Texans:

Buc-ee’s isn’t your typical convenience store – they’re huge, with some stores covering over 50,000 square feet, and they offer a wide variety of items, including snacks, beverages, fresh food, clothing, home decor, and Texas-themed merchandise. It’s known for its homemade fudge, jerky, and beaver nuggets (caramel-coated corn puffs). Most Buc-ee’s locations are open 24 hours a day, seven days a week.

In November 2023, Mercedes announced it had made an agreement with Buc-ee’s to build EV charging hubs at most of its existing stores. Mercedes is aiming to have around 30 online by the end of the year. There are currently 48 Buc-ee’s locations across the US South, 34 of which are in Texas.

When I spoke to Mercedes-Benz High Power Charging CEO Andrew Cornelia last year, he was passionate about the importance of placing EV chargers near amenities that travelers need.

Mercedes offers open access for all EV drivers, including roaming with other charging networks. Its charging hubs support contactless payments with credit cards or smartphone wallets.

The first Mercedes DC fast charging station came online last November at its headquarters in Sandy Springs, Georgia. Mercedes-Benz plans to deploy 2,500 high-powered chargers in 400 hubs by 2027.

Texas is the US’s No. 1 producer of clean energy and ranks fourth in public EV charging. However, to meet driver demand, the state needs around 95,000 more public chargers by 2027.

Read more: America, Mercedes-Benz wants you to indulge in retail therapy while you’re DC fast charging


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Polestar (PSNY) stock faces potential Nasdaq de-listing after failing to file its annual report

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Polestar (PSNY) stock faces potential Nasdaq de-listing after failing to file its annual report

Another EV stock may be removed from the Nasdaq exchange. After failing to file its annual report, Polestar (PSNY) received a notice from the Nasdaq as the company faces a possible de-listing.

Polestar, Volvo’s former high-performance unit, was established as an EV brand in 2017 under Geely’s control.

Since launching the Polestar 2, its first all-electric vehicle, the brand has expanded into 27 markets globally. The electric car has even become a top seller in several key markets like Norway, Sweden, and Germany.

However, like many EV startups, Polestar has hit its fair share of hurdles. After cutting guidance late last year (from 80K to 60K), Polestar still missed its target, delivering 54,600 vehicles last year.

In February, Volvo announced plans to sell 62.7% of its stake in Polestar as it looks toward its next growth stage. Volvo also confirmed it will “not provide further funding to Polestar” outside of its existing $1 billion outstanding convertible loan.

The news came after Polestar announced plans to cut 15% of its global workforce amid slowing EV sales earlier this year.

Polestar-de-listing
2024 Polestar 2 (Source: Polestar)

Polestar stock facing potential Nasdaq de-listing

After failing to file its annual report for the fiscal year ending December 31, 2023, Polestar received a deficiency notice from the Nasdaq.

The notice states Polestar is not in compliance with its listing rules, which require the timely filing of periodic financial reports.

Polestar-4-price
Polestar 4 (Source: Polestar)

Polestar said the notice has no immediate impact on the company’s listing. However, under the Nasdaq listing rules, Polestar has 60 days to submit an action plan. If Nasdaq accepts it, Polestar could be issued an additional 180 days from the notice date, or until November 2024, to regain compliance.

The company has already received consent from lenders under its nearly $1 billion 3-year loan facility for the late filing. Polestar says it is fully committed to regaining compliance.

Polestar is working to file the annual report “as soon as practicable” and to report Q1 2024 earnings shortly after.

Polestar-de-listing
Polestar (PSNY) stock chart over the past 12 months (Source: TradingView)

Polestar stock was down over 13% on Monday following the potential de-listing notice. PSNY shares are now down over 50% this year, hitting their lowest prices since going public.

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