Is this the end of OPEC? How Saudi Arabia and UAE infighting threatens the future of the oil alliance

Published

4 years ago

July 12, 2021

admin

OPEC Secretary General Mohammed Sanusi Barkindo (L), Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman (C) and Russian Energy Minister Alexander Novak (R) attend an Opec-JMMC meeting in the UAE capital Abu Dhabi on September 12, 2019.

KARIM SAHIB | AFP via Getty Images

LONDON — Oil producer group OPEC has been plunged into crisis, with bitter infighting between Saudi Arabia and the United Arab Emirates raising questions about the future of the energy alliance.

OPEC and non-OPEC partners, a group of some of the world’s most powerful oil producers, abruptly abandoned plans to reconvene on Monday after last week’s meetings unexpectedly failed to broker a deal on oil production policy. The group did not set a new date to resume talks.

It means no agreement has been reached on a possible increase in crude production beyond the end of July, leaving oil markets in a state of limbo just as global fuel demand recovers from the ongoing coronavirus pandemic.

“OPEC+ has been thrown its most serious crisis since last year’s ill-fated price war between Saudi Arabia and Russia,” Helima Croft, head of global commodity strategy at RBC Capital Markets, said in a research note.

“Back-channel talks reportedly are continuing, but questions about UAE’s commitment to remaining in OPEC will likely grow in the coming days.”

The UAE-Saudi dispute appeared to be about more than oil policy, Croft said, with Abu Dhabi “seemingly intent on stepping outside Saudi Arabia’s shadow and charting its own course in global affairs.”

The pandemic held them together and now the post pandemic is breaking them apart.

John Kilduff

Founding partner at Again Capital

OPEC+, which is dominated by Middle East crude producers, agreed to implement massive crude production cuts in 2020 in an effort to support oil prices when the coronavirus pandemic coincided with a historic fuel demand shock.

Led by Saudi Arabia, a close ally of the UAE, OPEC+ has met monthly to decide on production policy.

OPEC solidarity ‘dissolved’

The disarray comes after OPEC+ on Friday voted on a proposal to increase oil production by roughly 2 million barrels per day between August and the end of the year in 400,000 barrels per day monthly installments. It also proposed to extend the remaining output cuts to the end of 2022.

The plans were rejected by the UAE, however, which wants a higher baseline to its quota to allow for more domestic production.

“No agreement was reached and as we stand now the OPEC+ alliance, if it is still the right word to describe the group, will produce at the July level for the rest of the year,” Tamas Varga, oil analyst at PVM Oil Associates, said in a research note.

“The [non-] outcome of the meeting re-writes the supply-demand landscape for the near and potentially for the distant future,” he added.

The rare public stand-off between the UAE and Saudi Arabia saw energy ministers from both countries engaging in a media blitz over the weekend to outline their respective positions.

“For us, it wasn’t a good deal,” UAE Minister of Energy and Infrastructure Suhail Al Mazrouei told CNBC’s Hadley Gamble on Sunday. He added that while the country was willing to support a short-term increase in oil supply, it wants better terms through 2022.

Speaking to the Saudi-owned Al Arabiya television channel on Sunday, Saudi Arabia’s Energy Minister Abdulaziz bin Salman called for “compromise and rationality” in order to reach a deal on Monday, Reuters reported.

Separately, a White House spokesperson reportedly said on Monday that President Joe Biden’s administration was pushing for a “compromise solution.” The U.S. is not a member of OPEC (which stands for the Organization of Petroleum Exporting Countries) but it has been closely monitoring the latest round of talks given their potential impact on crude markets into next year.

The OPEC logo pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria.

Ramzi Boudina | Reuters

Responding to the news that the OPEC+ meeting had been adjourned without a deal on Monday, John Kilduff, a founding partner at Again Capital, said: “The Opec solidarity dissolved today.”

“The pandemic held them together and now the post pandemic is breaking them apart. The UAE is sticking to their guns on wanting their baseline raised. They want to be able to produce more,” he told CNBC via email.

“Now the fun starts as to who breaks away,” Kilduff said, noting the UAE could be the “first domino” to fall.

OPEC was not immediately available to respond to a request for comment when contacted by CNBC on Tuesday.

Oil prices climb to multi-year highs

The news pushed oil prices to their highest level in nearly three years. International benchmark Brent crude futures traded at $77.65 a barrel on Tuesday morning, up 0.6% for the session, while U.S. West Texas Intermediate futures stood at $76.62, around 2% higher.

Oil prices rallied more than 45% in the first half of the year, supported by the rollout of Covid-19 vaccines, a gradual easing of lockdown measures and massive production cuts from OPEC+.

Samuel Burman, assistant commodities economist at Capital Economics, said OPEC producers were likely to increase oil production above quota next month as member states “seek to take advantage” of higher oil prices.

In addition to a rift between the UAE and Saudi Arabia, he said Abu Dhabi was probably “somewhat irritated” that Russia hadn’t been complying with OPEC’s production quotas.

Burman said non-OPEC leader Russia hadn’t introduced any compensatory cuts at all and was currently overproducing by around 100,000 barrels per day. “We think that this spat involving the UAE increases the chances that the entire agreement falls apart which would clearly pose a downside risk to our near-term price forecasts.”

— CNBC’s Patti Domm contributed to this report.

Environment

Hyundai keeps EV deals alive with IONIQ 5 leases starting at just $179 a month

Published

5 hours ago

September 4, 2025

admin

Hyundai keeps EV deals alive with IONIQ 5 leases starting at just 9 a month

Hyundai is keeping the savings going after extending its EV deals yet again. With leases starting as low as $179 a month, the Hyundai IONIQ 5 is hard to pass up right now.

Hyundai extends IONIQ 5, IONIQ 9 lease deals

After a “breakout” month for IONIQ 5 sales in August, Hyundai looks to keep the momentum rolling. At least for another month.

The Hyundai IONIQ 5 remains a top-selling EV in the US, and might be your best bet if you’re looking to go electric.

Through its Hyundai Getaway sales event, the 2025 IONIQ 5 was listed for lease for as low as $179 per month in August. Although the deals were set to end on September 2, Hyundai has extended them until the end of the month.

Advertisement – scroll for more content

The 2025 IONIQ 5, now with more range, an NACS port, and a stylish new design, can still be leased for just $179 per month.

That’s for the Standard Range SE trim with a driving range of 245 miles. The extended range IONIQ 5 SE, with up to 318 miles of range, is available from $199 per month.

You can even snag the souped-up XRT trim for under $300 a month right now. All the offers are for a 24-month lease with $3,999 due at signing.

The deals include the $7,500 EV Lease Bonus, which is also set to expire at the end of September. With the bonus, the net cap cost drops to just $24,380 (SE Standard Range RWD model).

2025 Hyundai IONIQ 5 Trim	EV Powertrain	Driving Range (miles)	Starting Price*	Monthly lease price September 2025
IONIQ 5 SE RWD Standard Range	168-horsepower rear motor	245	$42,500	$179
IONIQ 5 SE RWD	225-horsepower rear motor	318	$46,550	$199
IONIQ 5 SEL RWD	225-horsepower rear motor	318	$49,500	$209
IONIQ 5 Limited RWD	225-horsepower rear motor	318	$54,200	$309
IONIQ 5 SE Dual Motor AWD	320-horsepower dual motor	290	$50,050	$249
IONIQ 5 SEL Dual Motor AWD	320-horsepower dual motor	290	$53,000	$259
IONIQ 5 XRT Dual Motor AWD	320 horsepower dual motor	259	$55,400	$359
IONIQ 5 Limited Dual Motor AWD	320-horsepower dual motor	269	$58,100	$299

2025 Hyundai IONIQ 5 price, range, and lease price in September

Hyundai also extended the offers for its new three-row electric SUV, the IONIQ 9. Leases for the 2026 Hyundai IONIQ 9 start at $419 per month. If you choose to finance it, Hyundai is offering a $5,000 cash bonus on all trims.

Both the 2025 IONIQ 5 and 2026 IONIQ 9 are built at Hyundai’s EV plant in Georgia, enabling them to qualify for the $7,500 federal tax credit. With the credit set to expire at the end of September, the savings will likely disappear. It will be up to the automakers to step in with significant incentives to keep lease prices as low as they are.

Want to lock in the deals before they are gone? Check the links below to find local offers on the 2025 Hyundai IONIQ 5 and 2026 IONIQ 9 in your area.

Add Electrek as a preferred source on Google

FTC: We use income earning auto affiliate links. More.

Environment

Costco members get up to $1,250 off certified Volvos –here’s how

Published

5 hours ago

September 4, 2025

admin

Costco members get up to ,250 off certified Volvos –here’s how

Costco members looking for a break on car prices can tap into a new Volvo deal this fall. Members can tap into limited-time manufacturer incentives through the Costco Auto Program, a year-round auto-buying service that secures prearranged low pricing. The latest: a Certified by Volvo Limited-Time Special launched this week.

Certiﬁed by Volvo vehicles are pre-owned Volvos that must pass a rigorous test with 170+ points, have less than 80,000 miles, and receive a detailed CARFAX Vehicle History Report. They come with roadside assistance, and EVs and plug-in hybrids also include an 8-year/100,000-mile battery warranty.

Until October 31, 2025, eligible Costco members can score an exclusive bonus when buying select Certified by Volvo vehicles from model years 2022 through 2025.5. Gold Star and Business Members get $1,000 off, and Executive Members get $1,250 off. The offer applies to hybrids, plug-in hybrids, and BEVs. What makes this deal sweet is that the Costco perk stacks with any other manufacturer incentives you qualify for.

Among the vehicles on the eligible list: The Volvo EX30, the EX90, the XC90*, the most requested premium midsize SUV among Costco members last year, and the Volvo C40 EV, which also topped requests in the premium electric compact SUV category.

Advertisement – scroll for more content

To cash in on the offer, Costco members must register online for a certificate, then bring it to a Volvo dealership where they present it at the time of purchase. Full details are on the Certified by Volvo Limited-Time Special page.

*CarsDirect links are trusted affiliate links

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.

Environment

The ultra-luxe Genesis GV90 steals the spotlight at the brand’s new flagship space

Published

6 hours ago

September 4, 2025

admin

The GV90 is set to arrive as the most luxurious Genesis vehicle to date. With its debut approaching, Genesis is showcasing the ultra-luxe SUV at its new flagship brand space.

Genesis opens new brand space based on the GV90

Although it’s not yet in production form, Genesis is still showcasing its stunning new full-size electric SUV. The Neolun concept, unveiled last March at the New York Auto Show, will soon arrive as the brand’s new flagship model.

When Genesis launches the GV90, expected in mid-2026, it will become the brand’s largest and most luxurious electric vehicle yet.

According to Genesis, the GV90 is “an ultra-luxe, state-of-the-art SUV” that will take the luxury brand to the next level. We’ve seen camouflaged prototypes out testing a few times, revealing advanced new features and luxury design elements, such as coach doors, adaptive air suspension, and more.

Advertisement – scroll for more content

The GV90, or Neolun concept (for now, at least), is the centerpiece of the company’s new “Night in Motion” space, which Genesis opened on Thursday.

The Genesis Neolun concept (Source: Hyundai Motor Group)

Based on the Neolun concept, the new exhibition is “the starting point of the Genesis brand’s spatial philosophy.” It’s designed to showcase the brand’s latest design and the beauty of Korean aesthetics.

Genesis is expected to launch the GV90 in mid-2026, but we could see an official debut before the end of the year.

We will learn prices, range, and other specs soon, but the GV90 is expected to debut on Hyundai’s new eM platform. Hyundai claimed the new platform will “provide 50% improvement in driving range” compared to current EVs. It will also offer advanced Level 3 autonomous driving features.

One thing is sure: The Genesis GV90 won’t be cheap. As its largest and most luxurious SUV, the GV90 is expected to start at around $100,000. Higher trim levels could reach upwards of $120,000 or more.

FTC: We use income earning auto affiliate links. More.