As the outlook for the global oil market improves, and demand has withstood the impact of a new wave of epidemics, OPEC+ agreed to restore more production capacity. According to the statement, OPEC+ approved an increase of 400,000 barrels per day in February at its meeting on Tuesday. After analysts predicted that the degree of oversupply in this quarter will be lower than previously expected, OPEC+ decided to maintain its existing gradual increase in production plan. Global fuel consumption continues to pick up from the plunge in 2020. The increase in transportation and factory activities in major Asian consumer countries, as well as the decline in US oil inventories, has pushed crude oil prices on the London market close to US$80/barrel. Russian Deputy Prime Minister Alexander Novak said in an interview with Rossiya 24 television that “monitoring and analysis show that despite the high number of new crown infections, the hospitalization rate is quite low, and it has not curbed demand.”

An indicator to measure the performance of the US manufacturing industry at the end of 2021 did not meet expectations, and demand was stable, but delivery time and price indicators fell. According to data released on Tuesday, the American Institute of Supply Management (ISM) manufacturing index fell to 58.7 in December, the lowest level since January 2021. The previous value was 61.1, higher than 50 implying expansion. Economists surveyed by Bloomberg expected a median of 60. The decline in overall data obscured the strong performance of the sub-indices. The indices that measure supplier deliveries and prices paid for raw materials-although still high-have fallen to their lowest levels in more than a year. Improved delivery times and lower input prices usually indicate weaker demand. However, the recent decline shows that capacity constraints are beginning to ease.

Minneapolis Federal Reserve Governor Neel Kashkari said that he supports raising interest rates twice this year to deal with the risks of inflation. “I have moved forward the time of the two interest rate hikes to 2022 because inflation is higher and more persistent than I expected,” Kashkari wrote in a paper on Monday. This article was published on the Minneapolis Federal Reserve website on Tuesday. Since becoming the governor of the Minneapolis Federal Reserve in 2016, Kashkari has been the Fed's most dovish decision maker. His change underscores the general belief among Fed officials that action is needed to deal with rising inflation this year. The year-on-year price increase in the United States in November reached the highest level in nearly 40 years.

The chip delivery time has been extended in December, indicating that the supply of parts and components that have been affecting the growth of various industries for many months has not been resolved. Susquehanna Financial Group research shows that last month's delivery time increased by six days compared to November, reaching approximately 25.8 weeks, which is the longest time since the company started tracking data in 2017. Susquehanna recently changed the method of calculating delivery time, added more data sources, and revised previous estimates based on the new system.

Goldman Sachs Group expects that as the acceptance of digital assets rises, Bitcoin will compete with gold for market share, making it impossible for its fans to target the $100,000 target price. Goldman Sachs estimates that the floating-adjusted market value of Bitcoin is slightly less than $700 billion, accounting for 20% of its so-called "store of value" market composed of Bitcoin and gold. The value of gold available for investment is estimated at US$2.6 trillion. Zach Pandl, the bank’s co-head of global foreign exchange and emerging market strategy, wrote in a report on Tuesday that “assuming” Bitcoin’s share of the store of value market rises to 50% in the next five years, its price will rise to just over 10 Ten thousand U.S. dollars, with a compound annualized rate of return of 17% or 18%.

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