🛢 OPEC+ deepens the energy divide

Uh-OPEC… The world’s largest coalition of oil-producing countries just dealt the rest of the world a doozy: yesterday, OPEC, Russia, and other allies agreed to curb oil production by 2M barrels a day — the biggest cut since 2020. It’s a blow to President Biden, who’d asked OPEC members to boost production to lower US gas costs.

• Sharp reversal: OPEC+ slashed production during lockdown as demand dropped. Then the group ramped up production as the global economy reopened.
• Putin pleaser: While oil prices did spike after Russian President Putin’s invasion of Ukraine, they’ve fallen more than 30% in the past four months on recession fears. After yesterday’s announcement, prices are rising again — helping OPEC+ members (including Russia) but hurting consumers.

Bundle up… it could be a cold winter. European energy prices have set records this year after Russia suspended EU gas deliveries. So EU countries are capping oil companies’ revenues, trying to reduce energy demand, and launching relief funds to offset the rising cost of fuel. Meanwhile, oil giants are pumping huge profits:

• $hell: Last quarter Chevron, Shell, TotalEnergies, and ExxonMobil posted a combined record $51B in profits. Saudi juggernaut Aramco nearly doubled its quarterly profit, raking in a staggering $48B.

Pizza robots are on the rise… and even Jay-Z's giving them dough. The rapper turned VC invested $16.5M in Stellar Pizza — a mobile robo-powered restaurant — that’s said to crank out as many as 420 (ahem) pizzas a day. Stellar's the brainchild of three former SpaceX engineers, who describe their mechanical baby as a "spaceship on wheels." That ship comes with rocket-like speed:

• 30 minutes or (way) less: Stellar says its pie-robot can assemble and cook a pizza in under 5 minutes.
• It's not (human) delivery: Because the resto is mobile (picture: a big truck), it can double as the delivery vehicle.

Metal-handcrafted… Stellar isn't the only up-and-comer getting into the bionic-baking biz. Both PizzaHQ (New Jersey) and Picnic Works (Seattle) offer some form of automated pie-assembly line. And that's just 'za: Chipotle is looking to chip-making machines and Jack in the Box embraced a french-fry bot. While the innovations may seem futuristic, the motivations appear timeless: $$.

• Automate profits: Paying workers and renting shops cost money. A robot-staffed food truck (that doubles as a kitchen) is a shiny alternative for investors looking for a bite of the restaurant biz.

• Cry-pto: US regulators told Biden that crypto could threaten US financial stability (think: wild price swings, fraud, and market manipulation). Now Washington is wrestling with how to regulate coins.
• USBChange: The EU said that electronics (phones, tablets) must accept USB-C cables as universal chargers by late 2024. Apple is testing iPhones that swap its proprietary lightning connector for USB-C.
• CutEO: 91% of CEOs expect a recession in the next year and 51% are considering cutting their workforce. Companies like Gap, Netflix, Microsoft, Wayfair, Peloton, and Tesla have already laid off staff this year.
• Lawed: Elon Musk's efforts to get out of his deal to buy Twitter could end up costing him $100M in legal fees. If the deal does go through, Twitter's similarly large legal fees will also be Musk's problem.
• Moderate: Spotify's buying moderation company Kinzen to help it flag harmful content, especially in podcasts. Spotify says over 1M independent creators added podcasts to its service last year.

• Jobless claims
• Earnings expected from Constellation Brands, McCormick, Conagra, and Levi Strauss

Authors of this Snacks own: shares of Apple, Exxon, Google, Netflix, Spotify, and Twitter

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