Copper's Rise in the Energy Transition

Can copper remain an outperformer among commodity markets? While copper prices experienced a sharp correction in early April, they are still at historically elevated levels and have outperformed other commodities that were once closely correlated. Take crude oil as an example. From 2000 to summer 2022, copper and West Texas Intermediate (WTI) crude oil prices generally moved in tandem. When oil prices were low, copper prices tended to be low as well, and vice versa. However, this trend began to shift in late 2022, coinciding with the passage of the U.S. Inflation Reduction Act. This legislation paved the way for ...