Copper Surges on Lower Oil Prices and Dwindling Inventories

Copper prices rose to their highest level in over a week on Monday as lower oil prices alleviated concerns about economic growth and demand. The market also focused on dwindling inventories, which have fallen nearly 40% since the end of May to their lowest level since February at 244,025 tons.

The drop in oil prices was attributed to US President Donald Trump's decision to call off a fresh attack on Iran as he sought a deal to curb Tehran's nuclear ambitions. This move eased concerns about price pressures and boosted sentiment in the market.

According to Britannia Global Markets, 'The markets continue to be headline-driven as we start the week, with energy markets serving as the primary focal point.' The underlying fundamental picture for copper remains supportive, with inventories in both China and London Metal Exchange warehouses in a state of depletion.