Copper sinks as higher oil prices fuel demand concerns
CPER•Copper fell 1.2% to $14,300.50 a metric ton after oil prices surged, raising concerns about inflation and weaker economic growth. Brent rose 5.7%, while copper’s cash premium over the three-month contract widened to $98 a ton.
1. Oil weighs on copper
Three-month copper on the London Metal Exchange fell 1.2% to $14,300.50 a metric ton, giving up early gains after reaching $14,646.50. Brent crude rose 5.7%, its biggest daily jump in almost a month, as increased attacks on shipping in the Middle East fueled concerns about inflation and weaker economic growth.
2. Supply and other metals
Chinese buyers’ return after a week-long holiday had initially supported copper, and the Yangshan premium rose 5% to $125 a ton, its highest since November 2022. Mine-strike concerns in Chile and the Philippines and thin LME stocks also pointed to supply risks; the cash copper contract’s premium over the three-month contract widened to $98 a ton from about $89 on Wednesday. Aluminium fell 2.3%, zinc 1.4%, lead 1.9%, nickel 1.1% and tin 5.5%.
