As the fall worsened, it spilled over into the commodity markets. Historically, when this type of event occurs, it takes months for capital to return. There will still be a deficit by June, and that will drive oil prices higher
– said Jeff Currie, Head of Global Commodity Markets at Goldman Sachs, at the Commodities Global Summit organized by the Financial Times. Oil prices fell to 15-month lows after two US banks collapsed and Credit Suisse’s problems surfaced last week.
Currie also emphasized that remains very bullish on copper.
The outlook for copper is extremely positive. The lowest inventory levels ever measured are expected at 125,000 tonnes. The peak of supply will occur in 2024. In the short term, we expect the price of copper to be $10,500, and in the longer term, our target price is $15,000 per ton
Currie’s comments are in line with the expectations of Trafigura, a major copper trading company, that the price could exceed $12,000.
By the way, copper reached its all-time high of $10,845 in March 2022. Compared to this, it closed close to $8,700 on the London Metal Exchange on Monday, which means, according to Goldman Sachs’ expectations, there is a prospect of an appreciation of nearly 21 percent in the short term and roughly 72 percent in the long term.
Cover image: Getty Images
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