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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTrafigura chief economist discusses the outlook on EV-related metalsSaad Rahim from Trafigura discusses the outlook for lithium, platinum, cobalt and nickel.
Persons: Saad Rahim, Trafigura
Copper's rise to more than $11,000 a ton isn't supported by fundamentals, according to trading firm Trafigura. AdvertisementSupply and demand fundamentals haven't been enough to support copper's sky-high rally. Instead, the commodity's massive bull run is thanks to expectations of interest-rate cuts, according to the commodity-trading firm Trafigura. The pattern isn't exclusive to copper only, as other metals have also disassociated from their fundamentals in 2024, Rahim said. According to Bloomberg, Trafigura is an entrenched copper bull, forecasting in 2021 that the industrial metal could eventually hit $15,000 a ton.
Persons: , Saad Rahim, Rahim, Trafigura, Jeff Currie Organizations: Service, Federal Reserve, Bloomberg
REUTERS/Denis BalibouseSINGAPORE, Sept 27 (Reuters) - Global oil prices may stay under $100 a barrel for the rest of the year as rate hikes from central banks have tightened credit and reduced investments in risk assets such as commodities, commodities trading major Trafigura said on Tuesday. "The balance of risks and what we know today suggests that it would take quite a few changes in the market for oil to trade well above $100," Rahim said. Oil demand could rebound next year if China lifts COVID-19 restrictions and if the U.S. Federal Reserve pauses or cuts interest rates to support growth, he added. These factors, underpinned by underinvestment in the oil sector and low global oil inventories, could eventually push Brent back above $100 a barrel, Rahim said. The oil market is also watching out for possible supply responses from the Organization of the Petroleum Exporting Countries amid lower prices.
Market players typically borrow to build short positions in the futures market, with 85-90% coming from banks. Any such drop in the number of players reduces market liquidity, which can in turn lead to even more volatility and sharper spikes in prices that can hurt even major players. read moreNorwegian state-owned firm Equinor, Europe's top gas trader, said this month that European energy companies, excluding in Britain, need at least 1.5 trillion euros ($1.5 trillion) to cover the cost of exposure to soaring gas prices. Doing this, sources familiar with talks said, would help bring participants back into the market and increase liquidity. The banks have hit or are close to hitting their liquidity risk and counterparty risk levels," a senior banking source involved in commodities finance said.
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