Copper Surges on Lower Oil Prices and Easing Demand Fears

Copper prices have surged to their highest level in over a week as concerns about economic growth and demand ease, thanks in part to lower oil prices.

The London Metal Exchange saw copper rise by 0.6 percent to USD13,868 per metric ton at 1605 GMT on Monday, with the price touching USD13,900 per ton for its highest since July 22.

Traders point to the drop in oil prices following US President Donald Trump's decision to call off a fresh attack on Iran as a major factor in boosting sentiment and alleviating anxiety about price pressures.

Britannia Global Markets noted that 'the underlying fundamental picture for copper looks to remain supportive', citing dwindling inventories in both China and LME warehouses, which have fallen nearly 40 percent since the end of May to their lowest since February at 244,025 tons.

The market's focus on inventories comes as producers and traders continue to ship copper to the United States due to tariffs imposed by President Trump last year, creating a premium for US copper over LME prices.