The United Arab Emirates has pushed back against a plan by the OPEC oil cartel and allied producing countries to extend the global pact to cut oil production beyond April 2022, a rare statement revealing the country’s frustration with the group.
The Emirati Ministry of Energy called the proposal to extend the agreement for the entirety of 2022 without raising its production quota “unfair to the UAE,” according to the state-run news agency WAM.
One of the group’s largest oil producers, the UAE is seeking to increase its output – setting up a contest with ally and OPEC heavyweight Saudi Arabia, which has led a push to keep a tight lid on production.
Video conference talks were held on Friday between the 13 members of OPEC proper, followed by a technical meeting and discussions between the 23 members of OPEC Plus.
But the combined OPEC Plus grouping of members led by Saudi Arabia and non-members, chief among them Russia, failed to reach an agreement on oil output. Negotiations over the dispute are set to resume on Monday.
The UAE said it supported plans for output increases over the summer, believing the market to be “in dire need of higher production”.
The country suggested deferring the whole discussion of the agreement’s extension to a later meeting and appealed for an updated production quota that “reflects our current production capacity”.
Later on Sunday, Saudi Arabia’s energy minister said the supply pact due to end in April 2022 should continue for longer, Saudi-owned Asharq television reported.
Asharq also quoted the prince as saying there should be an increase in production to meet an expected decline in oil supply during the summer period.
Iraq Oil Minister Ihsan Abdul Jabbar also backed the OPEC Plus proposal to extend the pact on output curbs until December 2022, adding he expected oil prices to remain at $70 per barrel or above until then.
Iraq also agreed with a proposal that the group should increase its output by 400,000 barrels per day from August.
Speaking at a news briefing in Baghdad on Sunday, he said Iraq’s oil exports will be 2.9 million bpd in July, marking full compliance with the current OPEC agreement. The country exported crude at the same rate in June, official figures show.
Oil price plunge
OPEC faces conflicting pressures after last year’s plunge in oil prices as the pandemic wiped out travel and energy use.
The oil producers’ sharp output cuts kept prices from collapsing even more than they did.
Raising production now, as vaccination campaigns stoke hopes of economic recovery, would increase revenues for producing countries that have seen their budgets hard hit by lower prices. But pumping too much too soon could undermine the rebound in energy prices.
In an interview with CNBC on Sunday, Emirati Energy Minister Suhail al-Mazrouei voiced concerns over the Saudi-led production restraints.
“Everyone sacrificed but, unfortunately, the UAE sacrificed the most, making one-third of our production idle for two years,” he said.
Saudi Arabia has shouldered the deepest production cuts and urged caution, saying that oil demand and economic recovery from the pandemic remain fragile around the world.
The hitch in discussions came “due to the UAE raising a last-minute objection to the Russian-Saudi Arabia deal reached earlier”, according to analysts from Deutsche Bank.
“The UAE, which has raised its production capacity since 2018 when the individual baselines were set, insisted on having its baseline lifted by 0.6 million barrels per day (bpd) to 3.8 million bpd, thereby allowing them a unilateral production increase within the current quota framework,” according to Ole Hansen from Saxobank.
“Negotiations … will be difficult as OPEC Plus knows that if the UAE is allowed to produce from a different base, other members may protest,” said Louise Dickson from Rystad.
Saudi Arabia’s energy minister said on Sunday that no country can use a single month as a baseline production reference, Al Arabiya TV reported.
The Saudi-owned television channel also quoted Prince Abdulaziz bin Salman as saying he was neither optimistic nor pessimistic about OPEC Plus talks due to resume on Monday.
OPEC Plus essentially faces a choice between acceding to Abu Dhabi’s demands, or failing to reach a deal that could drive crude prices sharply higher. Also at risk is the unity of the alliance, which if broken could potentially trigger a price war.
Credit Suisse top energy stock picks include two Canadian companies – The Globe and Mail
Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Like Scotiabank Monday, Credit Suisse analyst Manav Gupta thinks now is the time to add energy stocks.
Mr. Gupta also provided a list of top picks which includes two Canadian stocks,
“We continue to believe that in a post Russia-Ukraine conflict world, we are short of crude oil, refined products and natural gas. We estimate global oil market was undersupplied by ~1.5MMb/d in 2Q 22 and will remain undersupplied by ~0.8MMb/d in 2H 22 and this will continue to support higher prices in the near-term. While IEA still believes markets will be somewhat balanced in 2022/2023, in our opinion, IEA is overestimating supply growth from certain regions (including OPEC) and still underestimating total global demand… World is short of refining capacity and we expect US refiners will likely be one of the biggest beneficiaries of that as European peers struggle to source replacement of Russian barrels … Our favorite names… also highlight investment cases for our favorite names. Integrated oil – XOM, CVX, SU [Suncor Energy Inc.] and CVE [Cenovus Energy Inc.]. Upstream – COP, OVV and CHK. Midstream – LNG, PAA and TRGP. Refiners – VLO, MPC, DINO, PSX and VTNR.”
Wells Fargo strategist Chris Haverland details what I think is the biggest short term equity market risk – earnings downgrades,
“After growing by 9% in the first quarter of 2022, S&P 500 Index earnings are expected to have grown by 5.7% in the second quarter of 2022 … It would be the slowest quarter for growth since the fourth quarter of 2020… The energy, industrials, and materials sectors should lead the way with energy earnings expected to growth by a remarkable 205%. Excluding the energy sector, overall S&P 500 Index earnings are expected to contract by 2%… Forward guidance will be key as many companies continue to deal with rising input prices, a tight labour market and continued global supply chain constraints.”
“WF on Q2 earnings” – (research excerpt) Twitter
The longer-term outlook for copper stocks is bright because of electrification, but it would be hard to tell that as miners and the commodity price continue to fall. The RBC research team discussed the trend,
“The North American Base Metals have almost fully caught up to the copper price and are now down 6% year-to-date (copper -11.7% ytd) but are still outperforming the broader market (S&P 500 -18.7% ytd, TSX -9.4% ytd). The North American Base Metals stocks are trading at an 18% discount to NAV, above trough levels around a 40% discount but near the historical avg. discount of 22% (see page 6). While the volatility could continue, we believe this pull back creates an opportunity to add high quality names which stand to benefit from the positive copper fundamentals in the coming years.
Diversion: “9 Invasive Plants You Should Rip to Shreds” – Gizmodo
Tweet of the day:
e smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Price cap on Russian oil could shake up the market – CNN
London (CNN Business)Europe and the United States have barred the import of Russian oil to cut off a crucial revenue source for the Kremlin. But the plan to pile pain on President Vladimir Putin, forcing him to reconsider his war in Ukraine, hasn’t worked.
Stocks rise as investors dial down Fed angst
What overturning Roe v. Wade means for the economy
Review: Cadillac is making a comeback and the all-electric Lyriq SUV is set to play a key role – The Globe and Mail
As many auto manufactures have struggled during the past few years between the pandemic and a chip shortage, Cadillac is seeing success.
“Cadillac in Canada has been on a roll for the last few years. 2020 was the best year in our history from a sales perspective, said Shane Peever, managing director of Cadillac Canada during the recent test-drive event for the all-electric Lyriq compact SUV in Park City, Utah. “And then we did it again in 2021″ for back-to-back sales records.
In 2020, Cadillac sold 12,066 vehicles in Canada; in 2021, that rose to 12,743. And momentum appears to be building thanks to its first all-electric vehicle. In fact, if you want a 2023 Lyriq, you’re out of luck – it’s already sold out. More than 3,300 have been preordered in Canada, with production to begin in August. Cadillac is now accepting orders for the 2024 models with dual electric motors, 500 horsepower and all-wheel-drive. No other pricing or feature details are available.
Our test vehicle was a rear-wheel-drive Lyriq with a 12-module, 100 kilowatt-hour battery pack and a one-motor system that produces 340 horsepower and 325 lb-ft of torque, and has an estimated range of 502 kilometres. It rides on GM’s new Ultium battery architecture – it’s the same battery technology used in the GMC Hummer EV and all GM EVs moving forward. It’s less expensive, more powerful and uses less cobalt than the batteries found in the Chevrolet Bolt.
With 457 kilometres of range to start, I travelled along highways, twisty mountain roads and through quaint little villages. The Lyriq felt smooth, composed and responsive. In sharp corners, it was surprisingly well-balanced. The default setting for the one-pedal felt overly sensitive and somewhat jarring, slowing down the vehicle abruptly and making my driving partner nauseous. Thankfully, you could turn off the system easily using an icon on the massive 33-inch curved LED display. Cadillac’s so-called “Regen on Demand” system, accessed via a paddle shifter on the left side of the steering wheel, also improves efficiency by allowing the driver to adjust the regenerative braking level and control how quickly the vehicle slows down or comes to a complete stop. The pressure-sensitive paddle was a bit finicky at first, but once you got the hang of it, it created a more engaging drive and added an extra eight kilometres of range.
After several hours and nearly 120 kilometres, the range dropped 145 kilometres – not bad considering we blasted the air conditioning in the blazing 27-degree heat, turned on the ventilated front seats, pumped up the tunes on the AKG 19-speaker audio system, and drove it like a gas-powered vehicle.
When stopped, the Lyriq garnered attention and compliments constantly from pedestrians, cyclists and other drivers. No surprise – it looks sharp. Designers faced challenges creating a new, memorable brand identity for Cadillac now that it has no engine. “For so long, the car’s design and face were defined by that big grille and the patterns and shapes that went into it. Now, everybody is rethinking, how do you have a clean brand identity that still feels unique in the marketplace,” said Tristan Murphy, interior design manager of the Cadillac Lyriq.
For Murphy, the solution was simple – it was in the lighting. “What really separates the Lyriq [from the competition] is the whole light-up animation. We took lighting to a whole other level where it’s not just about lighting the road and being functional, but being part of a beautiful walk-up sequence,” said Murphy. It’s stunning to witness – walk up to the vehicle with key fob in hand and the front lights come to life, starting with Cadillac’s trademark centre crest and working outward to the slim, vertical LED headlamps before ending with the rear taillights. The lighting theme also extends inside with 26 customizable colour choices to alter the mood in the cabin.
Removing the engine eliminated other constraints for designers, too. With no transmission tunnel, for example, it opened up the floor plan and allowed for smart storage solutions including a spot to store your purse, within arm’s reach. The bin is lined elegantly in juniper blue; the pattern is repeated above in a jewelrylike drawer perfect for hiding smaller items like cellphones or wallets. Intricate laser-etched patterns on the dark-ash wood highlight the craftsmanship and attention to detail in the cabin.
The Lyriq will be built at GM’s Spring Hill manufacturing facility in Tennessee and delivery for Canadian customers is expected later this summer.
2023 Cadillac Lyriq
- Base price: $69,898 (including Destination and Freight Charges)
- Motors: one motor (2023); dual electric motors (to come for 2024)
- Battery Pack: 100.4 kilowatt hours (rear-wheel drive); not announced (all-wheel drive)
- Charging capability: Level 2 (240-volt) 6-10 hours; DC fast-charger, 122 kilometres in 10 minutes
- Horsepower/torque (lb-ft): 340/324 (rear-wheel drive); 500/not announced (all-wheel drive)
- Claimed Range: 502 km (rear-wheel drive); not announced (all-wheel drive)
- Alternatives: Tesla Model Y, Audi Q4 e-tron, Jaguar I-Pace, Genesis GV60
Even though the Lyriq is electric, it still looks like a Cadillac. The new face is dramatic and bold with striking lighting details at the front and rear. I’m not a fan of the flush door handles, which make opening the door a two-step process – push the electronic button on the handle and grab the shark fin accent a few inches above.
In true Cadillac fashion, the cabin is upscale with a massive curved 33-inch LED display to access many items from the audio and navigation systems to the glove box compartment and ambient lighting choices. Many functions can also be controlled using a rotary dial on the centre control, but I prefer using the touch screen or better yet, Google’s personal assistant – it’s fast and works well.
The Lyriq is more engaging to drive than many competitors. Climbing up mountains was effortless and along sweeping roads it was sure footed. The ride was also whisper quiet with little road or wind noise in the cabin. The 2024 all-wheel-drive model is expected to tow up to 3,500 pounds.
The Lyriq is loaded-to-the-nines with safety technology and driving aids such as adaptive cruise control, advanced parking assist and Super Cruise, GM’s semi-autonomous hands-free driver assistance system. It also has Google with Google Maps and a personal voice assistant, wireless Apple Car Play and Android Auto, a built-in WiFi hot spot, and over-the-air software update capabilities.
Many competitors have front trunks, but the Lyriq doesn’t. No biggie – the rear cargo is large with 793 litres of space. The rear seats fold down with the touch of two buttons in the cargo area. Drop the seats and the cargo expands to 1,723 litres.
Cadillac is making a comeback and the Lyriq will certainly help thanks to innovative design cues, long driving range and posh, tech-friendly interior.
The writer was a guest of the auto maker. Content was not subject to approval.
Apple Seeds Fourth Betas of iOS 15.6 and iPadOS 15.6 to Developers – MacRumors
B.C. Premier John Horgan to resign in the fall after leadership review
M2 MacBook Pro SSD pales in comparison to M1 predecessor and Windows laptops – Windows Central
Silver investment demand jumped 12% in 2019
Europe kicks off vaccination programs | All media content | DW | 27.12.2020 – Deutsche Welle
Global Media Markets, 2015-2020, 2020-2025F, 2030F – TV and Radio Broadcasting, Film and Music, Information Services, Web Content, Search Portals And Social Media, Print Media, & Cable – GlobeNewswire
Health22 hours ago
Sudbury news: Northern agencies highlight national HIV testing day | CTV News – CTV News Northern Ontario
Tech11 hours ago
It's official: Xiaomi 12S series with Leica-tuned cameras is coming on July 4 – GSMArena.com news – GSMArena.com
Sports20 hours ago
Makar gets love from Orr after winning 2022 Norris, Conn Smythe Trophies – NHL.com
Real eState24 hours ago
Calls increase for more money as Montreal and rest of Quebec facing housing crunch
Health21 hours ago
Monkeypox case count rises to more than 3400 globally, WHO says – The Globe and Mail
Media22 hours ago
Omnicom Media Group Heads Home from Cannes with 39 Lions, the Media Network Crown, a New Global Consultancy and a Big Lead in Connected Commerce – Canada NewsWire
Politics22 hours ago
Roe v. Wade: How abortion came to divide US politics – CTV News
Real eState21 hours ago
U.S. real estate giant Blackstone says it will not target single-family homes in its Canadian expansion – The Globe and Mail