Copper is being hailed as the new oil, according to a top commodities analyst, Jeff Currie. In an interview with Bloomberg TV, Currie expressed his confidence in copper as an indispensable industrial commodity, citing the rise in demand due to artificial intelligence, data centers, green energy, and the development of new weapons.
With the increase in investments in AI and renewable energy, copper’s value has never been higher. Currie previously predicted this trend back in 2021 while he was at Goldman Sachs, and now he sees it as reaching lift-off stage with momentum behind it. The three major sources of demand for copper are now AI, green energy, and the military, which is a significant shift from just green energy three years ago.
Despite the high demand for copper, the supply remains tight, as it can take more than a decade to bring new copper mines online. This imbalance is predicted to drive copper prices to $15,000 per ton, with current prices already at record highs.
Currie compared his bullishness on copper to his sentiment towards oil in the 2000s when prices soared from $20 to $140 per barrel. This optimism for copper is reflected in the recent proposed takeover of Anglo American by BHP, a deal that would create the world’s largest copper producer. However, Anglo has rejected the offer and is now focusing on restructuring its business, including selling its diamond business De Beers.
The future of copper as the new oil looks promising, with potential for significant upside as demand continues to outstrip supply in the evolving industrial landscape.
