Home · World · Sep 8 archive
Copper Prices Hit New High Amid Chile Supply Disruptions and Strong US Demand
Confirmed
In Short: Copper prices have reached an all-time high, supported by strong US demand and supply disruptions in Chile, which accounts for a quarter of global mine production.
Copper prices have reached an all-time high, supported by strong US demand and supply disruptions in Chile, which accounts for a quarter of global mine production. According to Commerzbank’s Norman Liebke, the LME 3-month Copper has set a new all-time high above USD 14,530 per ton, with additional support from Chilean supply issues. Weather-related operational problems and port issues have cut exports from the world’s largest copper producer, further driving prices up.
The situation is exacerbated by ongoing supply disruptions in the Middle East, which are impacting fuel oil markets. A global shortage of fuel oil used by ships and power plants is looming, with a forecasted deficit of 218,000 barrels per day in the third quarter. This is due to protracted supply disruptions and refiners diverting fuel oil towards more profitable products like diesel and gasoline.
Diesel fuel prices have hit a record high, up more than 50% since the start of the war, according to NPR. The war in the Middle East is affecting not just oil prices but also refining processes, which are crucial for determining the cost of diesel and gasoline. Analyst Valerie Panopio from Rystad Energy warns that fuel oil supply will remain critically tight in the third quarter, threatening to raise costs for shipowners and power generators.
These disruptions are also impacting the broader energy market, with signs of the squeeze already visible in inventories and prices. The fuel oil deficit and rising bunker prices are expected to feed through to freight rates, adding to the overall cost burden for various industries.
What's confirmed
What's still developing
- The attack on Saudi energy sites on Tuesday came as oil prices continue to march up toward the $100 per barrel mark, as hopes for peace in the Middle East continue to shrink amid renewed mutual threats between the United States and Iran.
- "At times, rough seas also hampered operations at the ports. Since Chile accounts for about a quarter of global mine production, the lower exports are supporting the high price level." (This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.
- AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14.
- And in terms of oil prices and gasoline prices, what really matters is refining.
- NPR's Ayesha Rascoe talks to former State Department energy envoy David Goldwyn about how the war in Iran continues to affect gas and diesel prices.