OIL PRICES UP: Oil prices jumped today on news of a production shutdown in Libya and renewed military conflict between Israel and Hezbollah.
West Texas Intermediate was up more than 3% to above $77 and Brent crude was up about 3% to above $81 as of midafternoon.
Prices rose in large part because Libya’s eastern government, centered in Benghazi and not recognized internationally, said it was shutting down production because of a dispute with the rival western government, based in Tripoli, over leadership at the central bank, CNBC reports.
Matt Smith, lead oil analyst for the Americas at Kpler, told the outlet that the “force majeure on Libyan production and exports has the potential to have a significant impact on global markets.”
Meanwhile, the threat of broader conflict in the Middle East rose as Israel launched airstrikes in Lebanon, which the government said was an effort to prevent Hezbollah from firing a barrage of missiles.
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EXXON MOBIL FORECASTS STRONG OIL DEMAND THROUGH 2050: Exxon Mobil said in its global outlook released today that it expects crude oil demand to stay above 100 million barrels per day, roughly the same as today, through 2050, Reuters reports.
That is in stark contrast to the projection from the International Energy Agency that demand must fall about three-quarters to allow the globe to reach net-zero emissions.
Exxon warned that, without new investments in oil production, prices would soar in the years ahead.
“Oil and gas demand have a very, very long runway and will continue to grow over the next few years,” Exxon Economics, Energy and Strategic Planning Director Chris Birdsall told Reuters.
CANADA TO IMPOSE 100% TARIFFS ON CHINESE ELECTRIC VEHICLES: Canada announced today that it will impose a 100% tariff on Chinese-made electric vehicles and a 25% tariff on Chinese steel and aluminum, measures justified as necessary to counter Chinese overproduction.
“China has an intentional state-directed policy of overcapacity and oversupply designed to cripple our own industry,” Deputy Prime Minister Chrystia Freeland said. She also announced the government would begin reviewing whether to impose tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels.
The tariffs would mirror similar efforts by the U.S. and European Union to protect domestic markets from Chinese EVs.
Guy Saint-Jacques, a former Canadian ambassador to China, told the Associated Press that China is likely to retaliate via protectionist measures, perhaps against Canadian barley and pork.
The backdrop: Right now, the only Chinese-made EVs imported into Canada are Teslas.
But BYD makes models for as little as $12,000 that would be a major threat to the domestic industry. The company has been seeking to enter Canada.
And, more importantly, Canada’s stance brings it into alignment with the U.S., which is its largest market and with which it shares many supply chains.
“The U.S. does believe that a united front, a coordinated approach on these issues benefits all of us,” U.S. national security advisor Jake Sullivan told reporters on Sunday.
META INVESTS IN GEOTHERMAL: Facebook parent company Meta said today that it is investing in the geothermal company Sage Geosystems to “significantly” expand the use of the power source and set up the “first use of next generation geothermal power east of the Rocky Mountains.”
The deal was announced at the Department of Energy’s Catalyzing Next Generation Geothermal Development Workshop. The exact terms of the deal were not disclosed, but the companies said it was expected to add 150 megawatts of geothermal baseload power to the grid, and that the first phase will be online in 2027. The additional power is meant to support the vast demand for power from the growth in Meta’s data centers.
POLAND MOVES FORWARD WITH FIRST NUCLEAR PLANT: Poland’s government plans to include $1.2 billion in its 2025 budget for the nation’s first nuclear power plant, Bloomberg reports.
Finance Minister Andrzej Domanski said in announcing the subsidy plans that the country needs both renewable energy and nuclear generation.
Bechtel, the U.S. firm, is working on construction, and the Polish government aims to get U.S. government support for the project.
RUNDOWN
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