Supercharged Commodity Boom: Definitely. Supercycle? Not Exactly

  • Fortunes for oil and copper diverge as green revolution looms
  • Bullish forecasts still come with longer-term caveats
Watch: All commodities, from oil to metals, have been surging with gold extending its rebound, copper exceeding $9,000 and WTI oil futures holding above $62 a barrel, despite a slight pull back in Asia. (Source: Bloomberg)
Lock
This article is for subscribers only.

A surge in commodity prices has Wall Street banks gearing up for the arrival of a new supercycle, but underlying dynamics suggest it isn’t going to be a repeat of the epic China-led boom at the start of this century.

Copper heading for new all-time highs, surging agricultural markets and oil prices back at pre-Covid levels are driving excited talk as economies, juiced by massive stimulus, rev up after Covid-19 lockdowns. The theory is that this could be just the start of a years-long rally in demand for raw materials across the board.