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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.

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Honda unveils new WN7 electric motorcycle, but with a huge dealbreaker

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Honda unveils new WN7 electric motorcycle, but with a huge dealbreaker

Honda has officially unveiled the new WN7, its latest electric motorcycle and the first in a planned lineup of larger EV two-wheelers. Designed as a commuter-friendly electric motorcycle for the European market, the WN7 is part of Honda’s push toward carbon neutrality.

The launch shines more light on a reveal we’ve long been waiting for. But with a price tag of £12,999 (nearly US $18k), the real question is whether this modest commuter bike has a fighting chance in an increasingly competitive segment.

While Honda hasn’t released the full technical specs for the WN7 just yet, the company has revealed several key features that give us a glimpse of what to expect. The bike will be powered by a permanent magnet synchronous motor paired with a chain drive, offering a familiar mechanical setup for riders used to older combustion-engine motorcycles. Up front, riders will get a 5-inch color TFT display, and the bike will debut a newly developed Honda RoadSync app, which enables smartphone connectivity for navigation and communication. For added practicality, the WN7 includes a generous 20-liter underseat storage compartment, which should be a nice bonus for commuters looking to stash a helmet or daily essentials.

Honda estimates the WN7 will offer a range of over 130 km (83 miles) on a single charge, making it suited for daily commuting and city riding. It features a fixed lithium-ion battery and supports both home and rapid charging. Using a standard household outlet, riders can expect a full charge in under three hours, while a CCS2 rapid charger can top the battery up from 20% to 80% in just 30 minutes, adding flexibility for quick turnarounds during a busy day.

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The WN7 is being marketed as a practical, everyday-use electric motorcycle targeting primarily younger riders in urban environments. Honda is also promising quiet operation, easy handling, and a new sound-emitting system to enhance pedestrian awareness, taking cues from current EV regulations in both automotive and two-wheeled segments.

Production is set to begin later this year at Honda’s Atessa plant in Italy, and the bike will be eligible for government EV subsidies in various European markets.

However, Honda hasn’t yet shared key specs like top speed, motor power, or battery capacity, all of which are vital to truly assessing how this electric bike stacks up in real-world use. But with the announced price of £12,999, it’s already clear that the bike won’t be price competitive against other commuter electric motorcycles in the market.

Electrek’s Take

Look, I’m excited to see Honda finally putting an actual electric motorcycle into production. This isn’t a concept or a lab experiment – it’s a real bike you’ll be able to buy. But with a price of £12,999 (approximately US $17,700) for what appears to be a commuter-level electric motorcycle, this thing might be dead on arrival.

Unless Honda is hiding some truly game-changing specs under the panels, this pricing just doesn’t make sense. Riders in the commuter category already have plenty of options ranging from electric scooters to motorcycles, with many models from smaller manufacturers offering comparable (or even better) range and speed for half the price.

Honda may be banking on brand loyalty, reliability, and build quality to justify the price, and maybe that will work for some buyers. But unless the WN7 delivers dramatically better specs than what’s currently been shown, most would-be EV riders are likely to look elsewhere.

This might be a huge milestone for Honda’s electrification roadmap, but it’s hard to call it a win for riders at this price point.

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Tesla partners with Uber Freight to offer Tesla Semi electric trucks at discounts

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Tesla partners with Uber Freight to offer Tesla Semi electric trucks at discounts

Uber Freight is launching a ‘Dedicated EV Fleet Accelerator Program’ in partnership with Tesla to lower the most significant barrier to electric Class 8 adoption: upfront cost.

The buyer program pairs purchase subsidies for Tesla Semis with pre‑arranged dedicated freight and route planning around Tesla’s Semi Charger network, which is currently being deployed in the US.

As the name implies, the Dedicated EV Fleet Accelerator Program aims to accelerate the deployment of electric vehicles in Uber Freight fleets.

Here’s how Uber aims to achieve that from the press release:

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  • Subsidized Price: Fleets purchasing Tesla Semis through this program will receive a subsidy on the purchase price.   
  • Predictable Growth: Fleets will integrate their Tesla Semis into Uber Freight’s dedicated solutions for shippers for a pre-determined period. This creates an opportunity for carriers to forecast revenue with confidence, while shippers gain consistent access to reliable, zero-emission capacity. 
  • Optimize Utilization: Uber Freight taps into its extensive freight network to match carriers with consistent, high-quality freight from our strong shipper base—helping ensure the addition of these Tesla Semis stay fully utilized and carriers see dedicated, real, measurable returns from the start.

Uber actually had a similar partnership with Tesla for its passenger vehicles in Uber’s ride-hailing fleet. Uber drivers were offered discounts on Tesla vehicles and Tesla integrated Uber’s app in its system to work with the car’s navigation and only suggest rides within the vehicle’s current range.

Now, Uber Freight will integrate its software on Tesla Semi trucks and help truckers get routes that work with the electric trucks and its

There are still many unknowns about the program. Primarily, we don’t know how much Uber and Tesla are subsidizing the trucks.

We don’t even have the price of the Tesla Semi.

Tesla originally announced a price of $150,000 for the 300-mile version of the Tesla Semi and $180,000 for the 500-mile version, but this was in 2017, when the electric truck was initially unveiled.

The vehicle program has been delayed several times since and Tesla never updated the price publicly since.

We recently reported on an early Tesla Semi customer, Ryder, complaining of a “dramatic” price increase. The price could have doubled, based on documents Ryders submitted to authorities to obtain financing for its Tesla Semi test fleet.

Now Uber Freight says that Tesla will review the total cost of ownership with potential fleet buyers through its new program.

Tesla Semi is now expected to enter volume production in 2026.

The automaker is also starting to deploy its Megacharger stations, EV fast-charging stations designed for commercial electric vehicles, such as the Tesla Semi.

It is currently primarily installing Megachargers at its own facilities and those of early test partners, but there are also a few public Megacharger stations on the way.

Electrek’s Take

This is cool. We don’t know the exact size of the subsidy, but it is a significant development that Uber Freight is offering more job opportunities for those who own an electric truck.

It should encourage more fleet managers to accelerate their fleet transition to electric vehicles.

The sticker price is often a significant barrier to EV adoption, even though the total cost of ownership is often cheaper than that of internal combustion engine vehicles. However, for truckers, the total cost of ownership is much more important since it is their business.

However, everything suggests that the Tesla Semi will cost closer to $300,000 than $150,000, and therefore, every consideration is important when making such a large purchase.

Interestingly, this new partnership coincides with Rebecca Tinucci’s recent appointment as CEO of Uber Freight.

Tinucci was the head of Tesla’s charging division until last year when she was reportedly fired, along with her entire team, by Elon Musk after she refused to let go a higher percentage of her team.

Now, she is back working with Tesla through this program.

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Tesla settles another fatal Autopilot crash before it gets to trial

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Tesla settles another fatal Autopilot crash before it gets to trial

Tesla has agreed to settle another wrongful death lawsuit from a fatal crash involving Autopilot before the case could get to trial later this year.

It’s one of many lawsuits involving several crashes involving Tesla’s advanced driver assistance systems (ADAS), Autopilot and Full Self-Driving (Supervised), after the floodgates were open following a watershed trial.

Over the last few years, Tesla vehicles have been involved in numerous accidents involving the automaker’s advanced driver assistance systems (ADAS): Autopilot and Full Self-Driving (Supervised), better known as ‘FSD’.

Despite the names of those feature packages, they are not considered automated driving systems. They are Level 2 driver assistance systems and require the driver’s attention at all times.

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Drivers and victims involved in those crashes have often sued Tesla, but the automaker has managed to have the cases dismissed, placing most of the blame on the drivers.

However, things started to change over the last year.

Last year, Tesla settled a wrongful death lawsuit involving a crash on Autopilot that happened in 2018, and last month, the automaker lost its first trial over a crash that occurred in Florida in 2019.

For the first time, a case went to trial before a jury, and they decided to assign a third of the blame for the crash to Tesla for the role Autopilot played. The rest of the blame was assigned to the driver, who had already settled with the victims and their families before the Tesla trial began.

The jury awarded the plaintiffs $243 million. The automaker has made clear its intentions to appeal the verdict.

Before the trial, the plaintiffs offered Tesla to settle for $60 million, and the company refused.

The trial process cost them much more.

The jury didn’t buy Tesla’s usual argument that it couldn’t be blamed because it clearly informs the driver that they are always responsible for the vehicle. The plaintiffs’ lawyers successfully argued that Tesla was careless in the way it deployed Autopilot, without implementing geofencing and marketing it to customers in a manner that encouraged the abuse of the system.

Following the trial results, Electrek reported that the “floogates of Autopilot lawsuits” were open.

There are dozens of additional lawsuits against Tesla involving incidents with Autopilot and FSD, and they are all riding on the verdict as well as all the information that came from the trial.

The same lawyers and law firms that represented the plaintiffs in the trial in Florida are also representing victims and the families in those other lawsuits.

Brett Schreiber, the lead attorney in the Florida case, is also leading Maldonado v. Tesla, another wrongful death lawsuit against Tesla involving its Autopilot feature. The case was set to go to trial in the Alameda State Superior Court by the end of the year.

The case involves a Tesla vehicle on Autopilot that hit a pickup truck on the highway, killing fifteen-year-old Jovani Maldonado, who was a passenger in the pickup truck. His father was driving him back home from a soccer game.

In a new court filing, Tesla and the plaintiffs have requested that the court approve a settlement that the two parties have reportedly agreed upon.

The settlement is confidential.

Electrek’s Take

Like I said, the floodgates are open. We are now starting to see the crashes that occurred in 2018 and 2019 being addressed in court.

This is just the beginning.

Crashes on Autopilot and then FSD have greatly ramped up starting in 2020-2021 with greater delivery volumes and Tesla launching FSD Beta.

I hope that more cases reach trial, as we do learn a lot more about Tesla and its deployment of driver assistance systems through them.

But with how the first one went, I am sure the automaker is much more eager to settle those cases.

However, can it just keep doing that?

There have already been over 50 deaths related to crashes involving Tesla Autopilot or FSD.

As morbid as it sounds, if the going rate for a Tesla Autopilot-related death is around $50 million, that’s already more than $2.5 billion and growing.

This is nuts. Will this continue to happen?

More people die in crashes involving Tesla’s half-baked ADAS products. Tesla continues to compensate the victims and their families with millions each time, essentially using the money it earns from selling the dream of those half-baked ADAS features eventually leading to real autonomy.

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