The price of copper has never reached its current level since 2014. From the last half of last year, its price has been increasing tremendously. But what factors have been contributing to this positive growth?
Electric vehicles are believed to be responsible for this growth. The available data about electric vehicles shows that their number is expected to increase from 3 million this year to over 27 million in 2027. This will consequently lead to growth in the annual demand for copper from 185,000 today to about 1.74 million metric tons in ten years’ time.
Other Factors Contributing to the Rise in the Demand for Copper
In most cases, copper has been found to be sensitive to economic changes taking place in the society. The demand for copper is expected to rise as the world has shown economic recovery. The increasing demand for oil is high hence that of copper is expected to increase too. Due to the high demand for copper, its price will rise also. However, it is the electric vehicles that will cause a significant change in the demand and price of copper soon.
What Is Causing the Oil Prices to Increase?
Oil has reached its highest price in about 2 1/2 years. What has caused this increase? Is it advisable to invest in petroleum companies? One of the most significant contributors to the rise in oil prices has been production cuts by OPEC members. Another critical factor has been increased demand for oil in the market. Its consumption in Mexico and Latin America, in general, has been on the rise. This is the right time to invest in oil companies.
Who is Matt Badiali
Matt Badiali works at Banyan Hill Publishing, and he is the editor of Real Wealth Strategist. He has extensive knowledge about natural resources as he has a degree in Earth Sciences and a Masters in Geology from two prominent universities, Penn State and Florida Atlantic respectively. While working as a geologist in an oil drilling company, he got an opportunity to visit different countries such as Haiti, Singapore, and Switzerland among others.
Through Real Wealth Strategist, Badiali shares his knowledge and experience with minerals. He writes on various topics about metals such as their current and expected demand. Investors in the mineral sector find this information essential as it helps them in making investment decisions. For over ten years, he has used his knowledge to make money from investment in mineral resources.
— Matt Badiali (@Matt_B_Guru) November 14, 2017