Copper bulls energized by trump victory, while oil likely to suffer downslide

One of the major beneficiaries of a Donald Trump victory has been the red metal copper. Since Donald Trump’s victory, the copper is up around 33 cents or about 14 percent. Copper bulls are energized by Trump policies which if implemented would lead to a significant increase in the copper demand. One of the key cornerstones of Trump policies has been infrastructure improvement and he has pledged to invest billions of dollars for that, which will essentially increase the demand for copper. In CME, copper is currently trading at $2.7 per pound and in LME it has crossed $6000 per ton mark. The copper is in for the best week in 30 years. The demand for copper has also seen recoveries in China and demand is expected to go up in the coming years.

However, a Trump victory unlikely to bode well for the oil; WTI is down 81 cents per barrel since Trump’s victory or around 2 percent. US President-elect Donald Trump has promised to unleash the potential of US energy reserve by removing policy barriers, which essentially means that the United States could produce more of its own oil and less rely on imports. This is not just bad news for oil, it’s terrible news. The oil price (WTI at $44 per barrel and Brent at $45.3 per barrel) is currently awaiting the outcome of the OPEC deal, for which the deadline is November 30th. However, once that part is done, the focus would turn on the possibility of a move ahead with Donald Trump’s ideas on US energy.