WTI Soars, EV-Long Haul Trucking Won't Be Ready For Prime Time For Years -- February 22, 2021

WTI:

• GS sees $75 Brent in 3Q21
• today: WTI soared over 4%; up $2.45; trending toward $62;

Tesla: Tesla's least expensive version of its Model Y is no longer available. Unlike the Model T, these cars are not made for the average man.

• Standard Range Model Y: $41,990; cut by $2,000 last week; "only," $39,999
• possibility of new federal tax credits for EVs that would make Tesla eligible for tax credits again; push profit margins lower if Tesla were to sell more of its cheapest model versions;
• bottom line:
• prices keep changing:
• expensive;
• federal tax credits are critical

Iraq: Iraq pauses massive prepaid oil deal with China as prices soar (very similar to hedging, but apparently Iraq can cancel any time it wants). 

EV trucks: yesterday I watched the Daimler unveiling of their new Freightliner Cascadia. Range: 250 miles. When I was growing up in North Dakota my dad told me truckers could re-fuel in Minnesota and drive clear across North Dakota without refueling. With a 250-mile range, EV truckers would have to re-charge at least once in North Dakota and possibly twice. With a 250-mile range between charging, that's barely a four-hour trip before re-charging.

Legacy Fund Deposits, February, 2021

Link here.  

WTI Trades Above $61; Oil Companies Push Dow Into The Green; Tech-Heavy NASDAQ Falls -- February 22 2021

Whoo-hoo!: WTI soars. Up over 3%; adds $1.80; trading above $61. Oil-related shares:

• ENB: up 1.70%
• EPD: up 0.70%
• KMI: up 1.4%
• CVX: up 3.62%; went over $99; next stop, $100?
• COP: up a whopping 6.63%; trading solidly over $51/share
• XOM: up 3.7%
• CLR: up almost 9%
• EOG: up 5.3%
• HES: up 4.4%;
• OVV: up an astounding 6.55%;
  

CLR: doing an incredible job building their inventory; managing assets very, very well. Fascinating to watch. 

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. 

Petrobras: second CEO kicked out by President of Brazil; disagreement over diesel pricing; link here to Irina Slav;

• shares plunge 23%
• road to Mexico?

First group:

• 10-Year Treasury: link here. 1.343%; down very, very slightly;
  
• DXY: link here. $90.12, down very, very slightly;
  
• Silver: link  here. $27.90; continues to melt up;
  
• CBOE volatility index: link here. 22.84; up 3.6%
  

Second group:

• 30-Year Treasury: link here; 2.144% up very, very slightly;
  

Bits And Pieces -- A Very Slow News Day -- February 22, 2021

Apple: Apple surpassed Samsung as world's largest smartphone maker in 4Q20.

• this feat was last achieved by Apple in 2016
• 80 million new iPhones
• largely driven by launch of first 5G-enabled iPhone series
• improved camera features
• 10 million more iPhones sold year-over-year (2019)
• Apple's global smartphone market share increased by almost 15%
• Samsung: closest rival to Apple
• market share decreased by almost 12%
• sold eight million fewer devices than the year before (2019)
• having said that, still a lot of growth available for Apple
• global sales of all smartphones, 4Q20: 384,622,300
• Apple global sales: 79,942,700
• Apple's percent of the pie (and the size of the pie is growing): 21%
• Apple's near 15% increase in market share yielded it an "upgrade super-cycle"
• 1Q21: Apple saw its largest number of iPhone upgrades ever
• the phone alone generated ore than $65 billion in revenue for 1Q21
• iPhone 12 mini: sales performed poorly but probably helped Apple overtake Samsung thanks to its small form factor and relatively affordable $699 price tag
• Apple likely to continue the iPhone 12 mini into 2021
• might bring in new buyers, who then might "buy up"
  
• will introduce the iPhone 13 in 2021
  

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The Literature Page

If I were still adding books to my library, I would probably buy Bettany Hughes' Venus and Aphrodite, 2021. I very much enjoyed her book on Helen of Troy; very well written and great vocabulary-builder. 

Link here to WSJ review. My hunch is that Bettany Hughes covers a lot of the same ground as she did in Helen of Troy but it is likely filled with cocktail trivia. 

When our public library opens again, I may take a look. 

Links to Bettany Hughes over at my literature blog:

• Greek words, Greed locations;
• Helen of Troy c. 2005;
• short blurb;

N.W.E. Crude Oil Basket -- Rotterdam Light Crude -- WTI And Dated Brent -- February 22, 2021

Huge, huge story for US shale. Huge. 

From AP News:

LONDON, Feb. 22, 2021 /PRNewswire/ -- S&P Global Platts (“Platts”), the leading independent provider of information and benchmark prices for the commodities and energy markets, announced that it will reflect WTI Midland in Dated Brent and its related components, and that the benchmark complex will be amended to a delivered Rotterdam basis. These changes, which include Cash BFOE (Brent/Ninan Blend, Forties, Oseberg, Ekofisk, Troll and WTI Midland) will become effective from July 2022 cargo deliveries.

Vera Blei, Head of Oil Markets Price Reporting, S&P Global Platts said: “Following extensive feedback and engagement with market participants, we are pleased to announce this important decision as part of our active stewardship of Dated Brent, which is the world’s most important oil benchmark. During the consultation, we heard widespread support on the addition of WTI Midland to the basket of crudes reflected in Dated Brent and for keeping strong connectivity to the forward Cash BFOE contract. We have also acted on strong feedback supporting a simplified fully delivered CIF assessment method that will better reflect the evolution of flows into Northwest Europe. These changes provide significant additional volume and will ensure the continued robustness of the Brent complex for the next decade and beyond.”

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North American Crude Oil Surge: India

Link here.