Hi Reader, here's what you need to know for June 2nd in 2:56 minutes.

☕️ Finimized over a ruby port at Fabrica da Nata in Lisbon, Portugal (22°C/72°F ☀️)

Today's big stories

The price of oil hit its highest level since 2018 on Tuesday, adding to China’s growing list of troubles
After tumbling 40% from record highs, it’s time to revisit bitcoin’s investment case – Read Now
Factory bottlenecks are helping European prices rise at the fastest rate in more than two years

Oil Be Back

What’s Going On Here?

It may not be on the run from a remorseless intelligent killing machine – at least, not yet – but resurgent oil prices have become just the latest trouble plaguing China.

What Does This Mean?

After dropping below zero thirteen months back, the price of oil has rapidly recovered: it hit its highest level since 2018 on Tuesday following optimistic forecasts from OPEC+, the influential group of major oil-producing countries and their allies.

OPEC+ reckons the global supply glut caused by the pandemic is nearly gone, and that inventories of stored oil will fall sharply in the second half of the year as restrictions ease and the global economy rebounds. The alliance accordingly greenlit a planned increase in daily oil production starting next month – while downplaying concerns that a potential Iranian return to international oil markets would materially alter supply-and-demand dynamics.

Why Should I Care?

The bigger picture: Red alert.
It’s not just oil: higher prices for all sorts of commodities are proving to be a headache for communo-capitalist China and its resource-hungry growth ambitions. As if that wasn’t bad enough, a recent rally in the international value of the country’s currency, the yuan, has made its exports more expensive and therefore less attractive overseas. China’s responded by resorting to measures it last used during the global financial crisis, telling local banks they need to hold more foreign currencies in reserve. Making it harder to buy the yuan using such currencies should help stem its rise.

Zooming out: Optimism is contagious.
It’s not just OPEC+: on Tuesday, the influential OECD raised its forecast for global economic growth this year from 4.2% to 5.8%. Subsequent growth of 4.4% in 2022 would bring most of the world’s economies back up to pre-pandemic levels, with the US and a freshly philoprogenitive China expected to be setting new records by the time 2023 rolls around (tweet this).

You might also like: How to invest in the energy industry and profit from rising oil prices.

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2. Analyst Take

The Big Bitcoin Debate

Bitcoin’s price dropped dramatically last month, potentially creating an opportunity. But before taking advantage of it, you’ll probably want to reexamine your investment thesis.

One of the best ways to do that is to wrestle with the bear case.

After all, if you’re going to buy or hold bitcoin, you should have good answers to the four major arguments for why it isn’t a good investment.

So that’s today’s Insight: the case against investing in bitcoin – and what might convince an investor that it doesn’t stop the cryptocurrency from being an attractive bet.

Read or listen to the Insight here

No more crypto FOMO

Every day it feels like there are more stories about the future of digital currencies.

And as you save, invest, and think about your financial future, you might feel like you’re missing out on something.

But you’re not too late, and Grayscale is here to help.

Grayscale is the world’s largest digital currency asset manager, operating 14 different cryptocurrency investment vehicles.

That includes the Grayscale Bitcoin Trust: an easy way to introduce bitcoin into your portfolio using your current brokerage account.

There’s more on that below, or get started straight away.

Learn More

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