Copper prices climb on supply concerns as oil extends rally

Copper prices continued their upward trend on Wednesday, supported by tightening global supply expectations and resilient demand from China, while oil prices extended gains amid escalating geopolitical tensions in the Middle East.

The most actively traded copper contract on the Shanghai Futures Exchange rose 1.21 percent to 106,100 yuan (US$15,672.55) per metric tonne after earlier touching a seven-week high of 106,760 yuan, reflecting concerns over constrained mine supply and sustained industrial demand in China, according to the Absa bank market commentary.

“On the London Metal Exchange (LME), benchmark three-month copper eased 0.39 percent to US$13,831.50 per tonne after reaching a six-week high in the previous session, as some investors took profits following recent gains,” the report stated.

The sustained strength in copper prices was closely watched in Zambia, where the metal remains the country’s largest export earner and a key source of foreign exchange.

Meanwhile, international oil prices climbed for another session as markets reacted to escalating tensions in the Middle East.

“Brent crude rose US$1, or 1.1 percent, to US$92.01 a barrel, while United States West Texas Intermediate (WTI) crude gained 82 cents, or 1.0 percent, to US$85.16 a barrel,” according to Absa.

The gains followed reports that United States forces had carried out strikes on Iranian military targets for an 11th consecutive night, while oil tankers reportedly altered routes in the Red Sea after warnings from the Iran-backed Houthi militia, heightening fears of possible supply disruptions.

Despite the recent rally, investment bank Goldman Sachs maintained its outlook for lower oil prices over the medium term, forecasting Brent crude to average US$80 per barrel in the fourth quarter of 2026 if tensions between the United States and Iran ease by the end of the year.

The bank also retained its 2027 forecast of an average Brent price of US$75 per barrel and US$70 per barrel for WTI, assuming shipping through the Strait of Hormuz remains uninterrupted.

Commodity markets continue to monitor geopolitical developments, Chinese industrial demand and global supply conditions, with movements in copper and oil prices expected to remain key drivers of investor sentiment and economic outlooks in commodity-exporting countries such as Zambia.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.