Why These ‘Boring’ Cars Are Great for Your Wallet

Andrew Lisa

December 22, 2020, 8:00 PM·10 min read

Corvettes and Camaros turn heads on the highway. Porsches and Mercedes stir adoration and envy. That envy, however, would probably dry up pretty quickly if anyone saw the bills associated with buying and owning an undeniably awesome car.

See: 35 Americans Cars To Buy Now That the Auto Industry Is Back

For the budget-minded buyer, boring is sometimes better.

GOBankingRates researched dozens of cars, trucks, vans and SUVs that aren’t particularly sexy but are incredibly forgiving to owners’ checking accounts. The study identified and ranked these so-called “boring” cars by analyzing U.S. News & World Report’s “Best Car Rankings for 2020” data. GOBankingRates found the starting MSRP, overall safety ranking out of 20 stars and gas mileage for each vehicle. Vehicles are ranked in ascending order from least great to best.

The result is a list of affordable vehicles in a variety of categories that are good on gas, safe to drive and/or hold their value well. The first 31 cars on the list, for example, boast MSRPs below the national average.

From hatchbacks and pickups to sedans, coupes and SUVs, there’s something for everyone on this list. All of them are fairly vanilla, but none will break the bank for drivers who value substance over style. If that sounds like you, and you’re in the market for a new car, this list is a great place to start shopping.

Last updated: Dec. 22, 2020

54. 2020 Chevrolet Suburban

Starting MSRP: $51,700
City mpg: 15
Highway mpg: 22
Combined mpg: 18.5
Safety rating: 16
5-year depreciation: $29,753

53. 2020 Nissan Armada

Starting MSRP: $47,100
City mpg: 14
Highway mpg: 19
Combined mpg: 16.5
Safety rating: 15
5-year depreciation: $27,106

Watch Out: 20 Things That Hurt Your Car’s Value

2020 Chevrolet Tahoe Premier Plus special edition.

52. 2020 Chevrolet Tahoe

Starting MSRP: $49,000
City mpg: 15
Highway mpg: 22
Combined mpg: 18.5
Safety rating: 16
5-year depreciation: $28,200

Check Out: 36 Great Used Cars You Can Buy for Less Than $10,000

King Ranch® edition of 2020 Ford Expedition and extended-length Expedition MAX reintroduces premium option for buyers of large SUVs inspired by iconic Texas ranch, extending 20-year collaboration.

51. 2020 Ford Expedition

Starting MSRP: $52,810
City mpg: 17
Highway mpg: 23
Combined mpg: 20
Safety rating: 19
5-year depreciation: $30,392

See: These 20 Cars Cost the Most To Maintain

50. 2020 Toyota Avalon

Starting MSRP: $35,875
City mpg: 22
Highway mpg: 32
Combined mpg: 27
Safety rating: 18
5-year depreciation: $20,646

49. 2020 GMC Sierra 1500

Starting MSRP: $31,195
City mpg: 16
Highway mpg: 21
Combined mpg: 18.5
Safety rating: 17
5-year depreciation: $17,953

48. 2020 Mazda CX-9

Starting MSRP: $33,890
City mpg: 22
Highway mpg: 28
Combined mpg: 25
Safety rating: 18
5-year depreciation: $19,504

2018 Honda Ridgeline RTL-E in Deep Scarlet Pearl.

47. 2020 Honda Ridgeline

Starting MSRP: $33,900
City mpg: 19
Highway mpg: 26
Combined mpg: 22.5
Safety rating: 19
5-year depreciation: $19,509

2020 Chrysler Pacifica Limited with S Appearance.

46. 2020 Chrysler Pacifica

Starting MSRP: $34,045
City mpg: 19
Highway mpg: 28
Combined mpg: 23.5
Safety rating: 19
5-year depreciation: $19,593

45. 2020 Ram 1500

Starting MSRP: $32,145
City mpg: 20
Highway mpg: 25
Combined mpg: 22.5
Safety rating: 18
5-year depreciation: $18,499

Check Out: 30 Surprising Cars That Lose Value Fast

44. 2020 Kia Telluride

Starting MSRP: $31,890
City mpg: 20
Highway mpg: 26
Combined mpg: 23
Safety rating: 18
5-year depreciation: $18,353

43. 2020 Toyota Sienna

Starting MSRP: $31,640
City mpg: 19
Highway mpg: 27
Combined mpg: 23
Safety rating: 18
5-year depreciation: $18,209

42. 2020 Chevrolet Silverado 1500

Starting MSRP: $28,500
City mpg: 16
Highway mpg: 21
Combined mpg: 18.5
Safety rating: 17
5-year depreciation: $16,402

41. 2020 Nissan Maxima

Starting MSRP: $34,250
City mpg: 20
Highway mpg: 30
Combined mpg: 25
Safety rating: 20
5-year depreciation: $19,711

40. 2020 Hyundai Palisade

Starting MSRP: $31,975
City mpg: 19
Highway mpg: 26
Combined mpg: 22.5
Safety rating: 19
5-year depreciation: $18,402

39. 2020 Chrysler 300

Starting MSRP: $30,040
City mpg: 19
Highway mpg: 30
Combined mpg: 24.5
Safety rating: 17
5-year depreciation: $17,288

Looking for a New Car? Here Are the Biggest Ways You’re Damaging Your Car’s Trade-In Value

38. 2020 Chevrolet Impala

Starting MSRP: $31,620
City mpg: 19
Highway mpg: 28
Combined mpg: 23.5
Safety rating: 19
5-year depreciation: $18,197

37. 2020 Toyota Avalon Hybrid

Starting MSRP: $37,000
City mpg: 43
Highway mpg: 44
Combined mpg: 43.5
Safety rating: 18
5-year depreciation: $21,294

36. 2020 Honda Odyssey

Starting MSRP: $30,790
City mpg: 19
Highway mpg: 28
Combined mpg: 23.5
Safety rating: 19
5-year depreciation: $17,720

35. 2020 Ford F-150

Starting MSRP: $28,745
City mpg: 19
Highway mpg: 25
Combined mpg: 22
Safety rating: 19
5-year depreciation: $16,543

Read: 18 Reasons Car Buying Will Never Be the Same Again

34. 2020 Toyota Tacoma

Starting MSRP: $26,050
City mpg: 20
Highway mpg: 23
Combined mpg: 21.5
Safety rating: 17
5-year depreciation: $14,992

33. 2020 Kia Sedona

Starting MSRP: $27,600
City mpg: 18
Highway mpg: 24
Combined mpg: 21
Safety rating: 19
5-year depreciation: $15,884

32. 2020 Volkswagen GTI

Starting MSRP: $28,595
City mpg: 24
Highway mpg: 32
Combined mpg: 28
Safety rating: 18
5-year depreciation: $16,456

The only midsize pickup Built Ford Tough, the 2020 Ford Ranger is ready for adventure and packed with driver-assist technologies to enable easier driving both on and off-road.

31. 2020 Ford Ranger

Starting MSRP: $24,410
City mpg: 21
Highway mpg: 26
Combined mpg: 23.5
Safety rating: 16
5-year depreciation: $14,048

30. 2020 GMC Canyon

Starting MSRP: $23,395
City mpg: 20
Highway mpg: 26
Combined mpg: 23
Safety rating: 16
5-year depreciation: $13,464

Discover: 15 Great Cars To Own for More Than 15 Years

29. 2020 Chrysler Voyager

Starting MSRP: $26,985
City mpg: 19
Highway mpg: 28
Combined mpg: 23.5
Safety rating: 19
5-year depreciation: $15,530

28. 2020 Hyundai Santa Fe

Starting MSRP: $26,275
City mpg: 22
Highway mpg: 29
Combined mpg: 25.5
Safety rating: 18
5-year depreciation: $15,121

27. 2020 Kia Sorento

Starting MSRP: $26,990
City mpg: 22
Highway mpg: 29
Combined mpg: 25.5
Safety rating: 19
5-year depreciation: $15,533

26. 2020 Kia Sportage

Starting MSRP: $23,990
City mpg: 23
Highway mpg: 30
Combined mpg: 26.5
Safety rating: 18
5-year depreciation: $13,806

25. 2020 Toyota RAV4 Hybrid

Starting MSRP: $28,350
City mpg: 41
Highway mpg: 38
Combined mpg: 39.5
Safety rating: 18
5-year depreciation: $16,315

Want a Little More? 30 Luxury Cars You Can Lease for $1,000

24. 2020 Mazda CX-5

Starting MSRP: $25,190
City mpg: 25
Highway mpg: 31
Combined mpg: 28
Safety rating: 19
5-year depreciation: $14,497

Completely redesigned new 2020 Escape best offers four new propulsion choices – including two all-new hybrids; standard hybrid targets best-in-class EPA-estimated range of more than 550 miles; plug-in hybrid targets a best-in-class EPA-estimated pure-electric range of 30+ miles.

23. 2020 Ford Escape

Starting MSRP: $24,885
City mpg: 27
Highway mpg: 33
Combined mpg: 30
Safety rating: 19
5-year depreciation: $14,321

22. 2020 Honda CR-V

Starting MSRP: $25,050
City mpg: 28
Highway mpg: 34
Combined mpg: 31
Safety rating: 19
5-year depreciation: $14,416

21. 2020 Ford Escape Hybrid

Starting MSRP: $28,265
City mpg: 44
Highway mpg: 37
Combined mpg: 40.5
Safety rating: 19
5-year depreciation: $16,267

20. 2020 Chevrolet Equinox

Starting MSRP: $23,800
City mpg: 26
Highway mpg: 31
Combined mpg: 28.5
Safety rating: 19
5-year depreciation: $13,697

19. 2020 Mazda Mazda6

Starting MSRP: $24,100
City mpg: 26
Highway mpg: 35
Combined mpg: 30.5
Safety rating: 19
5-year depreciation: $13,870

18. 2020 Volkswagen Golf

Starting MSRP: $23,195
City mpg: 29
Highway mpg: 35
Combined mpg: 32
Safety rating: 18
5-year depreciation: $13,349

17. 2020 Kia Optima

Starting MSRP: $23,390
City mpg: 24
Highway mpg: 32
Combined mpg: 28
Safety rating: 20
5-year depreciation: $13,461

Gas Savers: Cars, Trucks and SUVs With the Best Gas Mileage

16. 2020 Hyundai Sonata

Starting MSRP: $23,600
City mpg: 28
Highway mpg: 38
Combined mpg: 33
Safety rating: 19
5-year depreciation: $13,582

15. 2020 Mazda CX-30

Starting MSRP: $21,900
City mpg: 25
Highway mpg: 33
Combined mpg: 29
Safety rating: 19
5-year depreciation: $12,603

14. 2020 Toyota Camry

Starting MSRP: $24,425
City mpg: 29
Highway mpg: 41
Combined mpg: 35
Safety rating: 20
5-year depreciation: $14,057

13. 2020 Honda Accord

Starting MSRP: $24,020
City mpg: 30
Highway mpg: 38
Combined mpg: 34
Safety rating: 20
5-year depreciation: $13,824

12. 2020 Hyundai Kona

Starting MSRP: $20,300
City mpg: 27
Highway mpg: 33
Combined mpg: 30
Safety rating: 19
5-year depreciation: $11,683

Jaw Droppers: The Rarest Supercars in the World

11. 2020 Mazda Mazda3

Starting MSRP: $21,500
City mpg: 26
Highway mpg: 35
Combined mpg: 30.5
Safety rating: 20
5-year depreciation: $12,373

10. 2020 Kia Soul

Starting MSRP: $17,490
City mpg: 27
Highway mpg: 33
Combined mpg: 30
Safety rating: 17
5-year depreciation: $10,065

9. 2020 Toyota Camry Hybrid

Starting MSRP: $28,430
City mpg: 51
Highway mpg: 53
Combined mpg: 52
Safety rating: 20
5-year depreciation: $16,361

8. 2020 Honda Accord Hybrid

Starting MSRP: $25,620
City mpg: 48
Highway mpg: 47
Combined mpg: 47.5
Safety rating: 20
5-year depreciation: $14,744

7. 2020 Kia Forte

Starting MSRP: $17,890
City mpg: 31
Highway mpg: 41
Combined mpg: 36
Safety rating: 17
5-year depreciation: $10,296

Read: Great Cars To Own for at Least 5 Years

6. 2020 Honda Civic

Starting MSRP: $20,650
City mpg: 30
Highway mpg: 38
Combined mpg: 34
Safety rating: 20
5-year depreciation: $11,884

5. 2020 Chevrolet Sonic

Starting MSRP: $16,720
City mpg: 26
Highway mpg: 34
Combined mpg: 30
Safety rating: 19
5-year depreciation: $9,622

4. 2020 Toyota Corolla Hybrid

Starting MSRP: $23,100
City mpg: 53
Highway mpg: 52
Combined mpg: 52.5
Safety rating: 19
5-year depreciation: $13,294

3. 2020 Honda Insight

Starting MSRP: $22,930
City mpg: 55
Highway mpg: 49
Combined mpg: 52
Safety rating: 20
5-year depreciation: $13,196

2. 2020 Honda Fit

Starting MSRP: $16,190
City mpg: 33
Highway mpg: 40
Combined mpg: 36.5
Safety rating: 19
5-year depreciation: $9,317

1. 2020 Toyota Yaris

Starting MSRP: $15,650
City mpg: 32
Highway mpg: 40
Combined mpg: 36
Safety rating: 19
5-year depreciation: $9,007

More From GOBankingRates

Methodology: In order to find “boring” cars that are the best for your wallet, GOBankingRates looked at U.S. News & World Report’s “Best Car Rankings for 2020” data, excluding all cars in the “luxury” and “sports” categories. Once top-ranking models were identified, GOBankingRates found each car’s (1) starting MSRP from the manufacturer’s official website; (2) overall safety ranking out of 20 stars (overall, frontal crash, side crash, rollover) as sourced from the National Highway Traffic Safety Administration; and (3) combined (city and highway) miles per gallon for each vehicle as sourced from U.S. News & World Report data. Factors No. 1-3 were then scored and combined with the lowest score being best. Factor No. 1 was weighted three times and factor No. 2 was weighted 1/2 times in final calculations. For supplemental data, GOBankingRates used the Navy Federal Credit Union’s car depreciation calculator to determine five-year depreciation costs for each car. All data was collected on and is up to date as of June 15, 2020.

This article originally appeared on GOBankingRates.com: Why These ‘Boring’ Cars Are Great for Your Wallet

Reuters
Nasdaq ends sharply lower after Powell comments
Wall Street ended sharply lower on Thursday, leaving the Nasdaq down nearly 10% from its February record high, after remarks from Federal Reserve Chair Jerome Powell disappointed investors worried about rising longer-term U.S. bond yields. A decline of 10% from its February record high would confirm the Nasdaq is in a correction. The benchmark 10-year Treasury yield spiked to 1.533% after Powell's comments, which did not point to changes in the Fed's asset purchases to tackle the recent jump in yields.
18h ago
Reuters
"No dinosaur" - Carmaker Stellantis steps up electric ambitions
Newly-formed Stellantis, a combination of Peugeot-maker PSA and Fiat Chrysler (FCA), wants to use its clout to take on rivals racing to produce more electric vehicles, Chief Executive Carlos Tavares said on Wednesday. Stellantis is now the world's fourth largest carmaker, with 14 brands including Opel, Jeep, Ram and Maserati, and like its peers, it is grappling with a shortage of semiconductors and investments in electric vehicles. Low global car inventories and cost cuts should help boost profit margins this year, though the carmaker is also looking beyond savings, Tavares said.
2d ago
Bloomberg
Muni Recovery Trade Wins Big as Covid-Battered Bonds Rally Back
(Bloomberg) -- The best bet in America’s municipal-bond market is on life returning to normal.The Bloomberg Barclays index of the riskiest municipal securities backed by lease payments -- which includes those issued by the owner of Chicago’s McCormick Place convention center, the American Dream shopping mall in New Jersey and Hartford, Connecticut’s baseball stadium -- has returned more than 5% so far this year even after the recent selloff in the bond market. That’s five times more than the overall return on municipal junk bonds and stands in contrast to the losses investors have suffered on investment-grade debt.The returns reflect optimism that the end of the pandemic will herald the return of spectator sports, industry conventions and office life -- all of which have been in virtual hibernation since last March. That promises to revive the streams of revenue -- like hotel taxes -- that back local government bonds sold for civic projects.“The reopening bias is pervasive through the bond market,” said Gabe Diederich, a portfolio manager for Robert W. Baird, which holds Chicago convention center debt as part of $8 billion in muni assets under management. “It’s something investors are already shifting money toward in expectation it takes place -- very similar to the inflation trade.”The riskiest revenue bonds were among the hardest hit during the selloff that erupted in the wake of the pandemic a year ago, when investors dumped the securities in droves on speculation the projects would be roiled by the shutdown of the nation’s economy.The securities have since rebounded as the spread of the virus slows and millions of Americans get vaccinated.A 2050-maturing bond issued by the Metropolitan Pier and Exposition Authority -- which oversees Chicago’s convention center, the nation’s largest -- tumbled to as little as 90.5 cents on the dollar last year. It last traded for about 119 cents. Debt backed by the American Dream shopping mall, one of the biggest issues of unrated municipal bonds, has jumped to 112 cents from 92 cents in April.The gains come amid broader speculation that the nation’s economy will gain steam, with Congress moving toward enacting President Joe Biden’s $1.9 trillion recovery package. While that has triggered a rise in interest rates that has weighed on the broader debt market, municipal junk bonds have been relatively insulated since the higher yields make them less sensitive to rising rates.Yet even with the rise in yields, those on the highest-rated bonds are still low by historical measures. That has also helped to buoy demand for lower-rated bonds issued by borrowers that stand to benefit financially from the recovery.“They are anticipating continuing progress toward normalcy,” Diederich said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
11h ago
Reuters
Exxon scales back shale ambitions to focus on lower costs, dividend preservation
Exxon Mobil Corp is lowering its ambitions for oil and gas output, it said Wednesday, as it focuses on cutting costs and preserving dividends to win back investors that have soured on the company after years of overspending. Exxon last year fell out of the Dow Jones index of top U.S. companies and shares fell to a two-decade low. "The priority right now is to rebuild the balance sheet," Exxon Chief Executive Darren Woods said on a media call following a virtual analysts day that emphasized the company's commitment to lower spending and reducing debt, which has ballooned to $67.6 billion from $37.8 billion two years earlier.
2d ago
Bloomberg
Italy’s Green Bond Demand Smashes Peers in Debut Offering
(Bloomberg) -- Italy’s first foray into the sustainable debt market looks set to pull in the biggest-ever orderbook for a sale of green bonds.The nation racked up over 80 billion euros ($97 billion) of bids for its 8.5-billion-euro sale of 2045 securities via banks, more than twice that seen for Germany’s debut last year. European nations are piling into the market to finance a greener recovery from the pandemic.“Investors are still buying like there’s no tomorrow,” said Jens Peter Sorensen, chief analyst at Danske Bank A/S. “The green investor base continue to grow.”The rush of demand allowed the nation to knock a few basis points off the pricing, the latest evidence of a so-called greenium for sustainable assets. Countries and companies issuing such debt, where spending is ringfenced for environmental projects, have often managed to achieve cheaper financing than from conventional bonds.The strong interest comes despite the market’s pullback from a year-long rally in Italy’s bonds, following a global selloff. Investor sentiment toward the nation has improved following the appointment of former European Central Bank President Mario Draghi as Prime Minister this year, and its debt remains among the region’s highest-yielding assets.Europe is at the forefront of debt tied to more sustainable activities. The European Union has sold a series of social bonds tied to a jobs program and is set to become the largest green debt issuer after its recovery fund sales get underway later this year.The Boom in ESG Shows No Signs of Slowing: Green InsightItaly published its framework for green bond issuance last week and said that it would align as much as possible with the EU’s green bond standard, due in the coming months. The proceeds of the bonds will be used to fund projects from renewable electricity to biodiversity, while part of it will go to refinancing previous projects between 2018-2020.Italy lowered the guidance twice on the sale to 12 basis points over its 2041 bonds, from 15 basis points initially. Previously, the 33-billion-euro orderbook for Germany’s sale in September was the largest recorded, according to data compiled by Bloomberg.The country mandated Credit Agricole SA and Intesa Sanpaolo SpA as structuring advisors, and those plus BNP Paribas SA, JPMorgan Chase & Co. and NatWest Markets to joint lead manage the sale.“It comes at a perfect time,” said Althea Spinozzi, a fixed income strategist at Saxo Bank A/S. “By issuing a green bond Italy ensures to have more attention from the market, therefore better bidding metrics compared to a traditional issuance. It’s a win-win.”(Updates with sale and order sizes in second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
2d ago
MoneyWise
How stimulus checks can give you a $14,000 windfall this year
Some households are collecting a big pile of federal money in 2021.
5h ago
MoneyWise
Stimulus check changes: Did Joe Biden kill your $1,400 payment?
The president has agreed to a compromise making millions ineligible for the third checks.
7h ago
LA Times
Texas watchdog says grid operator made $16-billion error
A firm hired to monitor Texas' power markets says the region's grid manager overpriced electricity over two days during last month's energy crisis, resulting in $16 billion in overcharges.
3h ago
Reuters
Wall Street slumps on Fed remarks, bond scare
Wall Street slumped on Thursday and global stock markets declined after U.S. Federal Reserve Chair Jerome Powell repeated his pledge to keep credit flowing until Americans are back to work, rebutting investors who have openly doubted he can stick to that promise once the pandemic passes. Benchmarket U.S. Treasury yields rose toward last week's highs as Powell spoke, and the dollar hit a three-month high. With COVID-19 vaccines rolling out and the government fiscal taps open "there is good reason to think we will make more progress soon" toward the Fed's goals of maximum employment and 2% sustained inflation, Powell told a Wall Street Journal forum.
1d ago
Reuters
GameStop spikes as investors eye cryptic tweet by shareholder
GameStop shares closed up 6.4% at $131.93 after earlier hitting $147.87, their highest since a surge in the heavily shorted stock late last month. One analyst and some Twitter users pointed to a cryptic tweet by Ryan Cohen, a major shareholder of GameStop and founder of e-commerce firm Chewy.com, as a plausible reason for the move, although Reuters could not independently determine causation. The late afternoon rally in GameStop began roughly around the time that Cohen tweeted what appeared to be a screenshot with the puppet dog advertising mascot of Pets.com, a famous casualty of the dotcom bubble two decades ago.
10h ago
Barrons.com
Mortgage Rates Are Back Above 3%. Here’s Where They’re Headed Next.
Mortgage rates have risen past a psychological benchmark for the first time since they fell to historic lows during the pandemic. The average rate on a 30-year fixed-rate mortgage increased to 3.02% this past week, according to Freddie Mac’s Primary Mortgage Market Survey—the first time since July that the rate has risen above 3%. “Since reaching a low point in January, mortgage rates have risen by more than 30 basis points,” wrote Freddie Mac’s chief economist, in a release.
14h ago
Bloomberg
Texas Watchdog Says Grid Operator Made $16 Billion Error
(Bloomberg) -- A firm hired to monitor Texas’ power markets says the region’s grid manager overpriced electricity over two days during last month’s energy crisis, resulting in $16 billion in overcharges.Amid the deep winter freeze that knocked nearly half of power generation offline, the Electric Reliability Council of Texas, known as Ercot, set the price of electricity at the $9,000-a-megawatt-hour maximum -- standard practice during a grid emergency. But Ercot left that price in place days longer than necessary, resulting in massive overcharges, according to Potomac Economics, an independent market monitor hired by the state of Texas to assess Ercot’s performance. In an unusual move, the firm recommended in a letter to regulators that the pricing be corrected and that $16 billion in charges be reversed as a result.Potomac isn’t the first to say that leaving electricity prices at the $9,000 cap for so long was a mistake. Plenty of power companies at risk of defaulting on their payments have said the same. But the market monitor is giving that opinion considerable weight and could sway regulators to let companies off the hook for some of the massive electricity charges they incurred during the crisis.The Arctic blast that crippled Texas’s grid and plunged more than 4 million homes and businesses into darkness for days has pushed many companies to the brink of insolvency and stressed the power market, which is facing a more-than $2.5 billion payment shortfall. One utility, Brazos Electric Power Cooperative, has already filed for bankruptcy, while retailers Griddy Energy LLC and Entrust Energy Inc. defaulted and have been banned from participating in the market.“The market is under quite a bit of duress,” Kenan Ogelman, Ercot’s vice president of commercial operations told Texas lawmakers Thursday. Moody’s Investors Service downgraded Ercot one notch from A1 to Aa3 and revised the grid operator’s credit outlook to “negative.”Retroactively adjusting the power price would ease the financial squeeze on some of the companies facing astronomical power bills in the wake of the energy crisis. EDF Renewable Energy and Just Energy are among those asking the Public Utility Commission to reset the power price for the days after the immediate emergency while others have also asked regulators to waive their obligation to pay until price disputes are resolved.“If we don’t act to stabilize things, a worst-case scenario is that people will go under,” said Carrie Bivens, the Ercot independent market monitor director at Potomac Economics. “It creates a cascading effect.”The erroneous charges exceed the total cost of power traded in real-time in all of 2020, said Bivens, who spent 14 years at Ercot, where she most recently was director of market operations before becoming its watchdog. “It’s a mind-blowing amount of money.”While prices neared the $9,000 cap on the first day of the blackouts, they soon dipped to $1,200 -- a fluctuation that the utility commission later attributed to a computer glitch. The panel, which oversees the state’s power system, ordered Ercot to manually set the price at the maximum to incentivize generators to feed more electricity into the grid during the period of supply scarcity. The market monitor argues that Ercot should have reset prices once rotating blackouts ended because, at the point, the emergency was over.It’s asking the commission to direct Ercot to correct the real-time price of electricity from 12 a.m. Feb. 18 to 9 a.m. Feb. 19. Doing so could save end-customers around $1.5 billion that otherwise would be passed through to them from electricity providers, Bevins said.But power generators that reaped substantial profits from the high prices during the crisis week are likely to push back. Vistra Corp. on Thursday submitted comments to the utility commission arguing against repricing. During a Texas senate hearing the same day, utilities South Texas Electric Cooperative and the Lower Colorado River Authority also voiced opposition.Texas Competitive Power Advocates, a trade association representing generators, said retroactively changing prices could discourage future investments in Texas’s electricity market. “Changing prices after the fact creates additional instability and uncertainty,” Michele Richmond, the group’s executive director, said in an email.Bivens acknowledged the market monitor isn’t typically in favor of repricing, but noted in her letter to the commission that the move wouldn’t result in any revenue shortfalls for generators. Instead, the new price would reflect the actual supply, demand and reserves during the period.“This isn’t some Monday morning quarterbacking,” she said in an interview. “Ercot made an error and we don’t let errors slide.”The utility commission on Wednesday adopted a prior recommendation made by the market monitor, voting to to claw back some payments to power generators for services they never actually provided during energy crisis. The commissioners also expressed support for capping the price of certain grid services -- a request made by several retailers -- but didn’t take action on it. Another commission meeting is scheduled for Friday.(Adds Ogelman quote, Moody’s downgrade in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
6h ago
Bloomberg
Oil Sands Give OPEC a Boost With Half-Million-Barrel Output Cut
(Bloomberg) -- Major oil sands producers in Western Canada will idle about half a million barrels a day of production next month, helping tighten global supplies as oil prices surge.Canadian Natural Resources Ltd.’s plans to conduct 30 days of maintenance at its Horizon oil sands upgrader in April will curtail roughly 250,000 barrels a day of light synthetic crude output, company President Tim McKay said in an interview Thursday. Work on the Horizon upgrader coincides with maintenance at other cites.Suncor Energy Inc. plans a major overhaul of its U2 crude upgrader, cutting output by 130,000 barrels a day over the entire second quarter. Syncrude Canada Ltd. will curb 70,000 barrels a day during the quarter because of maintenance in a unit.The supply cuts out of Northern Alberta, following a surprise OPEC+ decision to not increase output next month, could add more support to the recent rally in crude prices. OPEC+ had been debating whether to restore as much as 1.5 million barrels a day of output in April but decided to wait.The Saudi-led alliance closely monitors other major oil producers as it seeks to manage the entire global market, and surging production in North America was its biggest headache in recent years -- especially from U.S. shale but also from Canada.“The U.S., Saudi Arabia, Russia, Canada, Brazil and other well endowed countries with hydrocarbon reserves -- we need to work with each other, collaboratively,” Saudi Energy Minister Prince Abdulaziz bin Salman said after the group’s meeting on Thursday.Canada’s contribution to balancing the market with less production, much like slowing output in the U.S., is not a deliberate market-management strategy but significant nonetheless.Even though the output cuts are short-term, the battered oil-sands industry shouldn’t be a concern for the Saudis in the long run either, judging from McKay’s outlook for the industry.“I can’t see much growth in the oil sands happening because there is going to be less demand in the future,” he said. “The first step is we have to get our carbon footprint down.”After years of rising output turned Canada into the world’s fourth-largest crude producer, expansion projects have nearly halted on the heels of two market crashes since 2014.Adding to its struggles, Canada’s oil industry is being shunned by some investors such as Norway’s $1.3 trillion wealth fund amid concern that the higher carbon emissions associated with oil sands extraction will worsen climate change. These forces help make future growth in the oil sands unlikely, said McKay, whose company is among the largest producers in the country.Oil sands upgraders turn the heavy bitumen produced in oil sands mines into light synthetic crude that’s similar to benchmarks West Texas Intermediate and Brent. Syncrude Sweet Premium for April gained 60 cents on Thursday to $1.50 a barrel premium to WTI, the strongest price since May, NE2 Group data show.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
7h ago
Investor's Business Daily
Getting A Third Covid-19 Stimulus Check Just Got Tougher — But You Might Still Influence How Big Yours Is
Congress is nearing passage of the third economic stimulus check it will send out to you and other taxpayers as part of its Covid-19 relief bill.
1d ago
FX Empire
Tesla Stock Update: Meltdown in Tesla Beginning as Forecasted
It appears the breakdown is underway, and this could turn into an outright collapse into mid-March.
11h ago
MarketWatch
Buzzy stock-market ETFs backed by Portnoy and Wood get crushed Thursday afternoon as the Nasdaq nears correction
Cathie Wood's flagship ARK Invest ETF and a VanEck Vectors Social Sentiment backed by Wall Street bro Dave Portnoy are down by at least 4%. The VanEck Vectors Social Sentiment ETF was down 4.3% in Thursday afternoon trade, in its debut. Meanwhile, Wood's ARK Innovation deepened its slide into correction on Thursday, off 6.6%. Both ETFs focus on drawing interest from many of the growthy tech stocks which are in the market's crosshairs as bond yields rise, including electric-vehicle maker Tesla Inc. . On Thursday, bonds took a leg higher after Federal Reserve Chairman Jerome Powell said he was watching the rise in rates but offered no concrete steps the central bank was taking to tamp down rate moves. The 10-year Treasury yield jumped by 7 basis points in afternoon action, hitting around 1.54% and accelerating a sell-off in stocks that are viewed as pricey and that don't offer a coupon. The tech-heavy Nasdaq Composite Index was down nearly 10% from its Feb. 12 peak, meeting the commonly used definition for a correction. The Dow Jones Industrial Average was down more than 400 points, or 1.3%, and nursing a 0.8% year-to-date gain. The S&P 500 index was down 1.6% and holding on to a 2021 gain of less than 0.1%. The Nasdaq Composite was negative for the year, down 1.4%.
11h ago
Bloomberg
Bitcoin Could Reach $1 Million or More, Kraken CEO Says
(Bloomberg) -- As the leader of crypto exchange Kraken, Jesse Powell is bound to be bullish on Bitcoin. Yet he’s projecting a disruptive future that would stretch the imagination of even the most ardent crypto fans.In a Bloomberg Television interview, Powell said Bitcoin could reach $1 million in the next decade, adding that supporters say it could eventually replace all of the major fiat currencies.“We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity,” he said. “The true believers will tell you that it’s going all the way to the moon, to Mars and eventually, will be the world’s currency.”The CEO also said San Francisco-based Kraken is considering going public, possibly next year.Extreme predictions are nothing new in the world of Bitcoin, where adherents stand to profit from convincing a wider audience that crypto is a legitimate asset class, rather than a speculative fad. The dollar remains the world’s reserve currency and is the benchmark for global trade, though its value has softened in the past year.Powell said Bitcoin bulls see it one day exceeding the combined market cap of the dollar, euro and other currencies.The dollar “is only 50 years old and it’s already showing extreme signs of weakness, and I think people will start measuring the price of things in terms of Bitcoin,” he said.The digital currency slipped 3% in early U.S. trading on Thursday, hovering around $49,000. Prices have surged almost 600% since the start of 2020 on the back of wider mainstream adoption, with bulls seeing it as both an inflation hedge and speculative asset.Critics argue that Bitcoin is in a giant, stimulus-fueled bubble destined to burst like the 2017 boom and bust cycle.Kraken benefits from higher prices as it reaps fees from increased trading. Bloomberg reported last month that the exchange was in talks to raise new funding, which would double the company’s valuation to more than $10 billion.“Personally, I think $10 billion is a low valuation,” Powell said. “I wouldn’t be interested in selling shares at that price.”The CEO did acknowledge the potential for wild market swings, saying prices can “move up or down 50% on any given day.” That kind of volatility has long been one of the negatives of Bitcoin, relegating the market to one of speculation, rather than a means of doing business.“If you are buying into Bitcoin out of speculation, you should be committed to holding for five years,” Powell said. “You have to have strong convictions to hold.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
17h ago
Benzinga
Gold Advocate Peter Schiff Criticizes Mark Cuban And Kevin O'Leary For Turning Positive On Bitcoin
Prominent gold advocate and Bitcoin skeptic Peter Schiff has criticized billionaire investors Mark Cuban and Kevin O’Leary for turning positive on Bitcoin. What Happened: “Bubbles typically peak when rational investors capitulate,” said Schiff on Twitter, calling them the newest skeptics to “join the cult.” Congratulations to those who bought Bitcoin early, pumped up the price, and who've been dumping into the hype. You succeeded in getting Wall Street to buy into the mania. When I first learned about #Bitcoin I didn't think smart investors would be dumb enough to buy. I was wrong. — Peter Schiff (@PeterSchiff) March 1, 2021 Schiff’s criticism comes after Kevin O’Leary announced he would be allocating 3% of his portfolio to the digital asset while also looking at investing in the most energy-efficient Bitcoin mining companies. Earlier this week, Mark Cuban commented on some of Schiff’s most recent remarks saying, “Gold is dead Peter. Move on.” Why It Matters: Schiff has often criticized Bitcoin as an asset class, calling it inferior to gold as a store of value. His most recent comments on Twitter invited criticism from Mark Cuban, who commented that gold is hyped just as much as cryptocurrencies. “As tech continues to get better/cheaper/faster there will be new applications and maybe even something that supersedes what we know as crypto today. But gold won't ever change. Which is why it will die as a SOV (Store of Value),” said Cuban on Twitter. According to Schiff, the fact that gold won’t ever change is part of its appeal to investors. Jeffrey Gundlach, a well-known gold bull, commented earlier today that Bitcoin is up over 467% in the past 12 months while gold is down by 11% for the same period. The price of gold is down 11% over the past twelve months. The S&P 500 is up 27% over the past twelve months. Bitcoin is up 467% over the past twelve months. Great dispersions often precede great reversions. We shall see. — Jeffrey Gundlach (@TruthGundlach) March 4, 2021 According to him, dispersions of this size between asset classes often come before reversions to the mean. Price Action: After a volatile week, the market-leading cryptocurrency was trading at $48,171 at the time of writing. Earlier this week, Bitcoin recorded a low of $43,867 and a high of $52,535. Image: Dmitry Demidko via Unsplash See more from BenzingaClick here for options trades from BenzingaFantom Is Top Performing Cryptocurrency Again: Here's What You Need To KnowGoldman Sachs To Restart Crypto Desk After Abandoning The Idea In 2018© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
7h ago
CoinDesk
DOGE Adoption on the Rise. Dallas Mavericks to Accept Dogecoin for Tickets, Merchandise
The team will soon be accepting the crypto as part of a deal with payment services provider BitPay.
11h ago
Bloomberg
Portnoy-Backed ETF Sees Third-Highest Volume Ever in a Debut
(Bloomberg) -- A new exchange-traded fund seeking to ride the companies most loved by investors online has found plenty of its own positive sentiment in its first day of trading.About $438 million worth of shares in the VanEck Vectors Social Sentiment ETF (ticker BUZZ) changed hands on Thursday, making it the third best ETF debut on record, according to data compiled by Bloomberg.“Normally, this kind of blow-the-roof-off volume for the first day is for ETFs that open up a new asset class like gold or Bitcoin,” said Eric Balchunas, ETF analyst for Bloomberg Intelligence.The fund, which has been promoted by Barstool Sports Inc. founder Dave Portnoy, follows an index that uses AI to scan online sources like blogs and social media to identify the 75 most favorably mentioned equities.Because of its criteria for inclusion, the hottest names among the day-trading crowd like GameStop Corp. and AMC Entertainment Holdings Inc. don’t actually make it into the gauge. Its top holdings currently are Ford Motor Co., Twitter Inc. and DraftKings Inc.Nonetheless, the rapid uptake suggests VanEck has succeeded in tapping into the increasingly powerful retail investing cohort.“Given the explosion of individual, younger retail traders, it makes sense to see a pile of volume,” said Dave Lutz, macro strategist at JonesTrading. “Whether it is the WSB crowd embracing Dave Portnoy’s marketing of the ETF, or institutions playing it to bet on the direction of the trend (or hedge) -- we won’t know for a bit. I suspect it’s a bit of both.”The fund opened at $24.40. It was down 1% at $24.15 at 12:02 p.m.(Updates with latest figures, analyst comments.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
8h ago