Retaliating from the steepest downturn since the Great Depression, investors are beginning to bull on commodities as the global market starts to escalate. With the groundbreaking news of the covid–19 vaccine being applied and more political news becoming clearer, it has opened a path for investors to starttaking risks on commodities again.
Copper and oil have always been strong indicating commodities for the global economy. With the upcoming economical reactivation, we can see in the future a big rise in demand. For oil, an increment in supply will be needed as more people resume driving and flying activities. As to Copper, it has risen 70% above its March low and to its highest in six years, besides its high demands do to the increment in renewables and the high demand from China, as well asother metals.
This forecast is good news for everyone, since everybody was affected either through health or economic issues or even both. We can see a promising future for 2021, with the help of the massive application of the vaccine, we will be able to see the growth of a strong economy.
References :
Commodities hit 6-year high with recovery boosting oil, copper. (2020, December 11). Retrieved December 19, 2020,
from https://www.mining.com/web/commodities-hit-6-year-high-with-recovery-boosting-oil-copper/
