While it is always risky attempting to forecast oil prices when volatility is soaring, the recent return above $100 for both WTI and Brent suggests fundamentals might once again be in the spotlight and a sustained price rally could be on the horizon.
Chart of the Week
– Dropping copper prices are often viewed as a crucial indicator in forecasting a future economic recession, hence the nickname Dr. Copper, and it seems that we have entered exactly that period.
– Since April, copper has lost almost a third of its value as inflation is creeping ever-closer to double-digit territory in both the US and Europe, suggesting economic momentum is slowing.
– Nominal interest rates on longer-term US treasuries have already started to weaken – the 10-year treasury rates fell to 3% recently – in another cautionary indicator of growth decelerating.
– Having hit the lowest rate since November 2020 late last week at 6,955/mt, copper prices have…
