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The Headquarters of the Organisation of the Petroleum Exporting Countries (OPEC) in Vienna, Austria on 17 December, 2018.
Beata Zawrzel | NurPhoto | Getty Images

LONDON — A group of some of the world’s most powerful oil producers will likely agree to continue increasing their output at a meeting on Tuesday, analysts say, as oil prices climb amid growing optimism over the fuel demand outlook.

OPEC and its non-OPEC partners, an alliance often referred to as OPEC+, will meet via videoconference to discuss the next phase of production policy.

It comes as the Middle East-dominated group, which is responsible for over one-third of global oil production, seeks to balance an expected upswing in demand with the potential for an increase in Iranian output.

OPEC+ announced massive crude production cuts in 2020 in an effort to support prices when the coronavirus pandemic coincided with a historic demand shock.

In April, the group opted to return 2.1 million barrels per day of supply back to the market over the May to July period, reflecting an optimistic outlook for improved mobility despite ongoing concerns about Covid worldwide.

OPEC+ is expected to reiterate this decision to gradually increase output during this week’s meeting.

“I think the event itself is going to be a non-event. We expect them to basically re-confirm the plan that they laid out on April 1,” Jeffrey Currie, global head of commodities research at Goldman Sachs, told CNBC’s “Street Signs Europe” on Tuesday. “I think the bigger issue underlying this is: How are they going to deal with Iran?”

Iran is currently in discussion with six world powers to revive its 2015 nuclear deal. The restoration of a deal could lead to more oil on the global market in the coming months.

“It’s too early to give specific numbers around Iran … So, I think the best you can hope for in terms of how they are going to deal with Iran is the indication that they are willing to offset any increases in Iran. That could be the positive upside surprise coming out of this meeting,” Currie added.

The flag of Iran is seen in front of the building of the International Atomic Energy Agency (IAEA) Headquarters ahead of a press conference by Rafael Grossi, Director General of the IAEA, about the agency’s monitoring of Iran’s nuclear energy program on May 24, 2021 in Vienna, Austria.
Michael Gruber | Getty Images News | Getty Images

OPEC Secretary-General Mohammad Barkindo on Monday said in a statement that he did not believe higher Iranian supply would be a cause for concern.

“We anticipate that the expected return of Iranian production and exports to the global market will occur in an orderly and transparent fashion,” Barkindo said.

International benchmark Brent crude futures traded at $70.75 a barrel on Tuesday morning in London, up around 2%, while West Texas Intermediate crude futures stood at $68.11, more than 2.7% higher from Friday’s close — with no settlement price on Monday due to a U.S. public holiday.

Oil prices have climbed more than 30% since the start of the year.

Iran likely to act ‘constructively’

“I think everybody is expecting Iran to add a lot of volume. So, beyond the July increase, they aren’t likely to come out with any commitment,” Amrita Sen, chief oil analyst at Energy Aspects, told CNBC’s “Squawk Box Europe” on Tuesday.

“We know that as demand rises, we will need more OPEC barrels, but I think Iran is going to be the big question mark for them,” Sen said.

OPEC+ initially agreed to cut oil production by a record of 9.7 million barrels per day last year as global fuel demand collapsed, before easing cuts to 7.7 million and eventually 7.2 million from January. As of July, the group’s production cuts are on track to stand at 5.8 million.

“The most consequential issue for OPEC+ over the short term relates to the potential rise of Iranian production as a result of the US and Iran returning to JCPOA compliance,” analysts at Eurasia Group said in a research note, referring to the acronym for the nuclear deal: the Joint Comprehensive Plan of Action.

Analysts at the risk consultancy said it believed progress in successive rounds of talks made a return to the deal likely in the third quarter of 2021.

“Over the medium term, OPEC+ will most likely adjust its policy to prevent the addition of Iranian barrels from derailing its market balancing strategy,” they continued. “Saudi Arabia will likely lean on Russia to better understand the scope of Iranian policy to work on adjustment plans. Iran would also probably act constructively as higher oil prices serve its own interests.”

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Read the wild email Tesla is sending to suppliers amid Supercharger chaos

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Read the wild email Tesla is sending to suppliers amid Supercharger chaos

After firing its entire Supercharger team, Tesla has sent out an email to suppliers which shows just how chaotic the decisionmaking leading up to the firings must have been.

Earlier this week, Tesla abruptly fired its entire Supercharging team, leading to an immediate pullback in Supercharger installation plans. Now we’ve seen the email that Tesla has sent to suppliers, and it’s not pretty.

When the firings were announced Monday night, there was little information about how they would affect Tesla’s plans.

On Tuesday, Tesla CEO Elon Musk said that “Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations.” According to Tesla’s website, Superchargers currently have 99.95% uptime.

But in the interim, we’ve already heard about Supercharger projects being cancelled, including halting rollout in the entire country of Australia, including sites that had already been subject to long-term leases and given the go-ahead for construction which will now be abandoned.

And Tesla has also sent out an email to all of its suppliers, which leaked to the internet. Here it is in full, but with contact information redacted:

To all concerned:

You may be aware that there has been a recent adjustment with the Supercharger organization which is presently undergoing a sudden and thorough restructuring. If you have already received this email, please disregard it as we are attempting to connect with our suppliers and contractors. As part of this process, we are in the midst of establishing new leadership roles, prioritizing projects, and streamlining our payment procedures. Due to the transitional nature of this phase, we are asking for your patience with our response time.

I understand that this period of change may be challenging and that patience is not easy when expecting to be paid, however, I want to express my sincere appreciation for your understanding and support as we navigate through this transition. At this time, please hold on breaking ground on any newly awarded construction projects and planned pre-construction walks. If currently working on an active Supercharging construction site, please continue. Contact [email redacted] for further questions, comments, and concerns. Additionally, hold on working on any new material orders. Contact [email redacted] for further questions, comments, and concerns. If waiting on delayed payment, please contact [email redacted] for a status update. Thank you for your cooperation and patience.

The email is remarkable for several reasons, largely because it shows a lack of structure and consideration to the decision to fire the entire team.

Firstly, Tesla states that it is “attempting” to connect with suppliers and that it may have sent multiple emails to some of them. This suggests that Tesla doesn’t have an established method of contact for all of its suppliers – either it doesn’t have a master contact list, or its previous method including points of contact within Tesla is not usable because, well, those points of contact would have been fired.

Second, it says that the “adjustment” (an odd word for firing an entire department) has led to a process of establishing new leadership roles. This is typically something that a company would consider before changing leaders, and ensure that there are current employees with experience who are ready to step up to take the position of a retiring leader, perhaps with a period of mentorship prior to the outgoing leader’s retirement.

Even in a situation where a firing is sudden, it’s typically reasonable to elevate a previous second-in-command to fill the void. This is why it’s beneficial to have a deep bench – something which Tesla has touted before.

Third, Tesla goes on to mention that these suppliers are “expecting to be paid,” which suggests that Tesla is likely to welch on its payment obligations, at least in the short term. We have seen Musk refuse to pay bills before, so mention of skipping out on payment must raise alarm bells for suppliers who have been working in good faith with Tesla.

Finally, Tesla asks for suppliers to continue construction on active projects, but to hold on breaking ground or doing pre-construction site walks. This could be considered unclear, as there are many parallel steps to approval, permitting and construction of sites, so it’s hard to set a single line that is easily communicated about which sites should continue and which sites shouldn’t. Presumably, site contacts within Tesla would be able to reach out to individual sites and tell them whether to continue construction or not – if they were still working there, which it seems they are not.

To ask for patience is reasonable when an unforeseen circumstance hits a company, but this is not an unforeseen circumstance – it is entirely self-inflicted by Tesla.

Other charging providers have reacted to Tesla’s disruption of its own Supercharger plans, with at least one company, Revel, suggesting that it’s ready to swoop in on “really good sites” that Tesla left on the table, particularly in Revel’s home in New York City.

Electrek’s Take

We have heard from several sources who told us that the reason for these firings is because Rebecca Tinucci, former head of Tesla’s EV Charging division, resisted Musk’s demand to fire large portions of her team.

While this is hearsay, it’s plausible considering the language in Musk’s letter announcing the firings – which claimed that some executives are not taking headcount reduction seriously, and made a point to say that executives who retain the wrong employees may see themselves and their whole teams cut. It isn’t a stretch to think that Musk included those demands since they were related to his firing of Tinucci and her team.

The Supercharging team was one of the more successful and crucial teams within Tesla, and many observers consider the Supercharger network to be Tesla’s primary “moat” that makes it better than the competition. Tinucci was also responsible for negotiating NACS agreements across the industry, leading to a huge win when Tesla’s plug became the de facto standard after basically every automaker adopted it over the course of the last year.

Superchargers are also incredibly important, especially in North America. In Europe there are more successful non-Tesla charge providers, but in NA, Tesla is the big dog. And if infrastructure is important, then Tesla pulling back is bad not just for Tesla but for EVs as a whole.

It seems abundantly clear that, whatever explanation we accept, the firing of the Supercharger team was not well-considered (and our readers seem to agree). Even if headcount reduction is necessary, the whole team shouldn’t be laid off. Even if it was necessary as a retaliatory measure – which would not be a good rationale – it still would be wiser to retain some part of it so as to avoid the chaos suggested by the email above.

Whatever mechanism led to the firing, it does fit into a pattern of increasingly erratic behavior that Musk has been showing lately.

Many possible explanations have been advanced to explain this behavior, and most of them don’t increase my personal faith that Musk will make the right decisions with Tesla.

As I said in our original post about Tesla’s first round of layoffs, we do need Tesla to keep pushing the industry forward. While Pandora’s box is open and EVs are here to stay at this point, regardless of Tesla’s ups and comparatively-rare downs, the rest of the industry is still trying hard to pump the brakes on the transition, even if it means America will be less competitive if those companies get their way.

Tesla is one of the few entities that is large enough and committed enough to dragging those timelines forward, whether the rest of the industry likes it or not. We need a healthy Tesla, and for that, we need steadier management. This email is not an example of that – and neither are most of Musk’s managerial actions recently.

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Podcast: more Tesla layoffs, charging team all gone, what is going on? Let’s talk about it

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Podcast: more Tesla layoffs, charging team all gone, what is going on? Let's talk about it

On the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the additional Tesla layoffs, the entire charging team’s departure, and more. Let’s talk about it.

Sponsored by SplitVolt: The Splitvolt Splitter Switch automatically shares power from your existing 240V dryer socket with your Level 2 EV charger. Learn more here.

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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Save up to $570 on Lectric e-bike bundles, Rad Power flash sale, EVOLV e-scooter special, and more

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Save up to 0 on Lectric e-bike bundles, Rad Power flash sale, EVOLV e-scooter special, and more

Today’s Green Deals are jam-packed once more with EV sales to get you geared-up for the cruising months ahead, led by Lectric eBikes’ 5-year anniversary celebration that is taking up to $570 off select e-bikes, like the XPedition Single-Battery Cargo e-bike at $1,399, while also giving away choices of five add-on accessories. It is joined by Rad Powers’ latest flash sale that is dropping the RadRunner 2 Utility e-bike to $1,299 and also offering free accessories on two other models, as well as a rare special from EVOLV that is dropping the PRO V2 Electric Scooter to its $1,799 low. Plus all of the other days’ Green Deals that are still going.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Lectric takes up to $570 off e-bike bundles

Lectric eBikes is currently celebrating its five-year anniversary, and wanting to extend the celebrations to its customers, has launched a new limited-time sale that is offering five free accessories along with your purchase of either an XP 3.0, XPedition, or XP Trike e-bike. A standout amongst the bunch is the XPedition Single-Battery Cargo e-bike for $1,399 shipped. Down from its usual $1,933 price tag, we only saw it fall to this price for a short-lived period in March before rising to stay at $1,475 since, but today’s deal is bringing things back to the all-time low once more. You’ll find the dual-battery model down to the second-lowest $1,699 rate. It should also be noted that you’ll automatically see the discounted rate once the e-bike and the accessories have been added to your cart.

The Lectric XPedition e-bike was designed for those who are always on the go – especially folks like parents dropping off and picking up their kids from school or delivery drivers who need long travel ranges. It comes equipped with an upgraded 750W rear hub-motor (1310W peak) alongside a 48V battery that carries the e-bike up to 75 miles on a single charge (150 miles with dual-battery), hitting speeds of 20 MPH using only the throttle and up to 28 MPH with the five levels of pedal assistance. It comes with a variety of features to enhance your ride: the integrated cargo rack, custom puncture-resistant tires, hydraulic mineral oil brakes paired with 180mm rotors, a headlamp, taillights, fenders on both wheels, and a backlit LCD display that gives you all the real-time performance data.

Rad Power RadRunner 2 Utility e-bike now $1,299

Rad Power Bikes has launched a flash sale through May 8 that is giving you three varying deals on three different e-bike models; either a $100 off discount or free accessories. The first of these deals is on the RadRunner 2 Utility e-bike for $1,299 shipped. Usually fetching $1,399 since the company lowered prices across its lineup of models, we’ve seen this e-bike included in most of the company’s holiday sales as well as several flash sales throughout the months, often falling to $1,299, but we have seen one instance of the price dropping further to the $1,199 low. Today’s deal is a solid $100 markdown off the going rate that lands at the second-lowest price we have tracked.

Carrying the mantle as Rad Power’s jack-of-all-trades model, the RadRunner 2 comes equipped with a 750W brushless-geared hub motor and 672Wh battery that propels it to a max speed of 20 MPH and travels up to 50 miles on a single charge. It features a four-level pedal assist with a low-profile cadence sensor, and a simple control panel that gives you the battery’s charge level and allows you to adjust pedal assistance settings. It also comes stocked with a rear-mounted cargo rack that offers a 120-pound payload, puncture-resistant fat tires, a standard LED headlight, and an integrated taillight with both brake light and flash mode capabilities.

The second deal is on the RadRunner 3 Plus for $2,099, which comes with a free accessory worth up to $100. This model comes with a 750W rear hub motor and 672Wh battery that hits a max speed of 20 MPH for 45+ miles on a single charge. It has been upgraded with one extra pedal assist level and offers much of the same array of features as the above deal, with the added bonus of fenders for both tires and a full digital display.

The RadTrike e-tricycle is also receiving a free accessory as part of this sale, albeit a pre-designated large basket for front-side mounting for $1,599. It comes with an equally powerful motor as the above models, but with a smaller 480Wh battery that only reaches a max speed of 14 MPH for a much longer 55+ miles of travel range on a single charge. You’ll also get the full list of features from the above deal as well to round out the package.

This flash sale will continue through May 8, with the discounts on the RadRunner 3 Plus and RadTrike being automatically applied in cart when you add both items to your cart. You can browse through Rad Power’s included accessories here. And head over to our Green Deals hub to look through all the other e-bike brands that are having spring sales, as well as deals on power stations, electric tools, water heaters, and more.

Three different frames with the EVOLV PRO V2 Electric Scooter against the night sky with city skyline in background, within post for Lectric 5-year anniversary sale that has the XPedition Cargo e-bike at $1,399

EVOLV PRO V2 Electric Scooter hits $1,799 low

EVOLV is offering a $200 off special on two of its electric scooter models, like the popular PRO V2 Electric Scooter for $1,799 shippedafter using the on-page promo code PROV2-ROCKS at checkout. Down from its $1,999 price tag, we’ve seen a few different discounts drop over the last year on this particular model since its release, all of them falling to the same $1,799 low during major holiday shopping events like Black Friday and Christmas sales. Today’s deal is no different, coming in as a solid $200 markdown that lands at the lowest price we have tracked.

The PRO V2 e-scooter comes equipped with dual 1,200W motors (2,600W peak) and a 52V battery that carries the scooter up to a max speed of 44 MPH for up to 37 miles on a single charge. You can also upgrade to the Pro-R V2 model for an additional $300 ($500 normally – the above promo code works for this upgraded model as well), boosting your motors to 1,400W of nominal power each and extending travel distance up to 50 miles on a single charge. They both feature front and rear spring suspension, front and rear hydraulic disc brakes, a front fender light, a taillight, running lights, turn signal lights, an IP54 water-resistance rating, and a smart center display – all with a foldable design for easy storage and transport when not in use.

The second model included in this special sale is the CORSA Electric Scooter for $2,635 shippedafter using the on-page promo code CORSA-ROCKS at checkout. This model also sports dual 1,200W motors (but with a 4,800W peak) and a larger 60V battery that hits 44 MPH for up to 37 miles on a single charge. It comes with 11-inch tubeless street-style grippy tires, front and rear shock suspension, dual hydraulic disc brakes, twin Halo LED headlights, in-deck lighting, twin LED taillights, turn signal lights, and a large center display.

Spring e-bike deals!

Other new Green Deals landing this week

The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.

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