Here are the top stories from global financial media overnight and this morning.
OPEC Oil Production Surges, But Remains Well Below Pre-War Levels
According to a survey, crude oil production from the Organization of the Petroleum Exporting Countries (OPEC) increased significantly last month, following the resumption of exports via the Strait of Hormuz by Gulf member states after a peace agreement was reached between the US and Iran.
The survey indicates OPEC's crude output rose by 2.34 million barrels per day to 18.75 million barrels per day, with the increase primarily driven by Kuwait, Saudi Arabia, and Iran. Despite this surge, production remains substantially below pre-conflict levels.
When adjusted for the departure of the United Arab Emirates, OPEC's June production is still 7.3 million barrels per day, or 28%, lower than its February level.
Burnham Pledges No Early UK General Election if He Becomes Prime Minister
Andy Burnham has stated that he would not call an early UK general election if he succeeds Keir Starmer as Prime Minister.
When asked on the social media platform Reddit on Friday if he would call an election, Burnham replied "no." He is the only declared candidate in the Labour Party leadership contest to succeed Starmer this month. Burnham stated he would adhere to the party's manifesto commitments from the 2024 election. This includes, he said, a pledge to maintain the so-called 'triple lock' on the state pension.
Chile's Top Two Mining Firms Chart Course for 70% Expansion in Lithium Joint Venture
Chile's SQM and Codelco are paving the way for a more than 70% increase in production from their major lithium joint venture, making a long-term bet on battery demand.
In an environmental impact study for a $3 billion operational overhaul plan, the joint venture, Novandino, stated its target is to reach a maximum annual production capacity of 470,000 metric tons. This compares to guidance of approximately 270,000 tons for this year. The company did not specify when this new target would be achieved.
Beyond electric vehicle demand, grid-scale battery storage is also driving consumption, and Novandino aims to capitalize on opportunities from double-digit global lithium demand growth. As the industry emerges from a global supply glut, this expansion could put pressure on higher-cost competitors.
Musk Implements Spending Cap on AI for Tesla Employees
Elon Musk has set a weekly spending limit of $200 for Tesla employees on artificial intelligence, taking a step to curb expenses as companies seek to control runaway bills.
Tesla employees have been informed that their usage of AI will be restricted starting Monday.
Several companies are now moving to limit employee usage. Uber, which previously encouraged employees to use AI extensively, recently capped usage at $1,500 per month. Meta, Walmart, and Coinbase have also indicated they will introduce spending limits.
Senior NATO Commander Says Europe Has Largely Filled Gap Left by US Force Reductions
NATO's Deputy Supreme Allied Commander Europe, Sir John Stringer, stated in an interview that European allies have largely filled the gap following US reductions of assets from its wartime contingency reinforcement plans for Europe.
Stringer made these remarks ahead of the NATO summit in Ankara next week, where allies will attempt to mitigate the impact of recent US statements indicating a strategic shift away from the European continent.
"European allies have certainly stepped up in terms of filling the gap created by the adjustments to US forces in Europe," Stringer said. He added that this demonstrates "a stronger Europe and a stronger NATO."
ECB Governing Council Member Nagel Stresses Need for Vigilance at Next Rate Decision
European Central Bank Governing Council member Joachim Nagel stated that the ECB should remain vigilant about inflation risks and maintain policy flexibility.
The Bundesbank President reiterated views expressed earlier this week. Speaking at an economic conference in Aix-en-Provence, France, on Friday, he said the end of the Middle East conflict cannot be taken for granted.
Nagel noted the current situation remains very volatile, pointing out that the drop in oil prices has surprised markets. "We should be vigilant, keep an open mind, and preserve policy options, whatever may come. I think that is the best we can do at the moment, which is to stick to the meeting-by-meeting approach."
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