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Brent Over $103 As Copper Hits Record Over $10,000

Tyler Durden's picture





 

As suggested last night, the escalation in Egypt, together with more riot news out of Yemen, and fear that tomorrow's Syrian "Days of Rage" will live up to their name, Brent Crude has pushed to the $103 psychological barrier (even as the Brent-WTI spread continue to be about $10, much as we speculated previously would be the case for a while). And speaking of psychological barriers, copper just passed a key one after it moved to a record north of $10,000/tonne for the first time "as investors bet that supply shortages and buoyant demand growth this year would keep fuelling a rally."

More from Reuters:

Copper, a benchmark industrial metal used in power and construction, has already surged more than 60 percent since last June when financial and commodity markets tumbled on fears of sovereign default in euro zone countries such as Greece.

"There are worries about copper supplies and about the deficit this year," said Barbara Lambrecht, analyst at Commerzbank. "Economic data from the United States and China have helped sentiment this week."

A recent Reuters survey showed the consensus was for a copper market deficit of 444,000 tonnes this year.

And in an amusing turn of events, the price of gold and silver continues to flatline even as some very prominent investors continue to make bets that the yellow metal will rise by 50% in 12 months. The only reason why they haven't taken off yet is due to the assumption that Gen Ben will not commence a new round of QE this summer, despite the clear telegraphing by Hoenig a few days ago of this being precisely the case, just as that the ECB will monetize European debt indirectly via the EFSF until such CDO implodes and European governments are left to monetize the monetization vehicle, sending gold to the 5 digit range. But all in due course...

 


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Thu, 02/03/2011 - 08:49 | Link to Comment Popo
Popo's picture

Input costs: up.
Margins: down.
Collapse: straight ahead.

Thu, 02/03/2011 - 08:52 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

ben says: " I never had inflation with that woman, never."

Thu, 02/03/2011 - 13:52 | Link to Comment gorillaonyourback
gorillaonyourback's picture

burlesconi says " I did"

Thu, 02/03/2011 - 08:54 | Link to Comment Hephasteus
Hephasteus's picture

Bitches just be all up on my copper. Dey be wantin to make wires and shit. Copper products just be cruising all over the world in trains boats and trucks.

Thu, 02/03/2011 - 09:00 | Link to Comment Captain Benny
Captain Benny's picture

Screw copper, it seems like I can't get any more 100oz bars of silver since yesterday!  Everyone is out of immediate delivery and they're all backordering!  Can't seem to find one reputable dealer with 100 oz in stock... I guess Bill Haynes at CMI was right.  100 oz won't be acquirable for a long time....

Thu, 02/03/2011 - 09:12 | Link to Comment sudzee
sudzee's picture

Seems like small and midsize silver suppliers have stock but those depending on bullion banks don't. Smaller players are paying a premium so can get almost unlimited supply quickly. Scotiamacotta looks to have been cut off by swiss refiner, Valcambi, and can't get supply onshore. I believe bullion banks can no longer replenish their supply at comex prices, the main reason for Scotia's huge premiums.

Paper/physical about to blow up.

OT: http://www.wimp.com/explainscanada/ 

Thu, 02/03/2011 - 09:48 | Link to Comment ciscokid
ciscokid's picture

Try First Majestic.

Thu, 02/03/2011 - 09:04 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Now that Internet is back in Egypt, I'm getting pics from friends there of the people and damage. The looted mall ones show all the stores cleaned out. Anyway to share them on ZH?

Thu, 02/03/2011 - 10:19 | Link to Comment TheDriver
TheDriver's picture

Upload them to http://imgur.com/ and post a link on ZH.

Thu, 02/03/2011 - 09:03 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

But the Bernank says he sees no inflation, only deflation.

Just like i see no justifiable reason for the Bernank and his ilk to exist on this planet for a second longer.

Thu, 02/03/2011 - 11:00 | Link to Comment SteveNYC
SteveNYC's picture

Post of the day.

Thu, 02/03/2011 - 11:25 | Link to Comment Common_Cents22
Common_Cents22's picture

the bernank says, "I see dead people."

Thu, 02/03/2011 - 09:05 | Link to Comment Shocker
Shocker's picture

Thats insane with copper, There is a new player in the metals market

Thu, 02/03/2011 - 09:14 | Link to Comment Dapper Dan
Dapper Dan's picture

Copper is the homeless mans gold!

Interesting fact. All copper wire and electrical components made of copper must be pure copper  from the mill, recycled copper cannot be used.

Thu, 02/03/2011 - 09:23 | Link to Comment Shocker
Shocker's picture

Really that seems odd. Why can't recycled Copper be used??

Thu, 02/03/2011 - 09:37 | Link to Comment Dapper Dan
Dapper Dan's picture

Extremely pure copper (greater than 99.95%), called electrolytic copper, can be made by electrolysis. The high purity is needed because most copper is used to make electrical equipment, and small amounts of impurity metals in copper can seriously reduce its ability to conduct electricity. Even 0.05% of arsenic impurity in copper, for example, will reduce its conductivity by 15%. Electric wires must therefore be made of very pure copper, especially if the electricity is to be carried for many miles through high-voltage transmission lines.

Thu, 02/03/2011 - 09:39 | Link to Comment Shocker
Shocker's picture

Neat, Thanks for the little information. I never exactly knew that.

Thu, 02/03/2011 - 11:44 | Link to Comment Green Leader
Green Leader's picture

Correct, it is the type of impurities that determine the conductivity, not the purity. My audio interconnects are hand made from medical grade silver.

Thu, 02/03/2011 - 10:48 | Link to Comment Pchelar
Pchelar's picture

Now I don't feel so bad about making my wife dig through 3 gallons of loose change to get all the pre-1982 pennies!

Thu, 02/03/2011 - 09:05 | Link to Comment Drag Racer
Drag Racer's picture

Aluminum keeping pace with copper as well...

Thu, 02/03/2011 - 09:09 | Link to Comment Bahamas
Bahamas's picture

I know a place were there is a submerged abandoned cable that might stretch for miles. Could it be made of copper?

May be that's Blackbeard's treasure for true!

Thu, 02/03/2011 - 09:38 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

The metals most commonly stolen are copper, aluminum, brass, and bronze.

http://en.wikipedia.org/wiki/Metal_theft

The electrical wiring between lamposts has greater returns than US Treasury's.

Time to start stealing.

Thu, 02/03/2011 - 09:13 | Link to Comment topcallingtroll
topcallingtroll's picture

It is getting harder to say this is all.speculative excess but I will say it. The next few months should let us know. Everybody is net dollar short right now. Gold bugs and big specs mo mo's and even some commercials in the commodities are all on the same side of this trade. Failing to hedge the commodities you produce is essentially a short dollar strategy. Let us hope Qe2 was sufficient and gdp and productivity start flying. Even the troll is getting worried he is backing the wrong horse, usually a sure sign of a reversal but I am not shitting in my pants out of fear yet so you inflation boys may have a few more months to run. My money is still on gdp in this race with the core and a tie goes to gdp. Things dont unravel with a tie, only if core is convincingly beating real gdp.

Thu, 02/03/2011 - 09:16 | Link to Comment topcallingtroll
topcallingtroll's picture

I feel like we are out in the woods with boy scout benny and it is cold and the tinder is wet from sleet and rain. He is furiously trying to get a fire started so we dont freeze to death and china and russia are trying to throw buckets of water on his sparks.

Thu, 02/03/2011 - 09:52 | Link to Comment All_Is_Well
All_Is_Well's picture

Repeat after me.......s p e c  u  l  a  t i v e    e  x  c  e  s  s.... 

Thu, 02/03/2011 - 09:57 | Link to Comment tmosley
tmosley's picture

Speculative excess can lead to much darker things.  It also can't exist without easy money.  Easy money can't exist without Central Banks.  The only real solution here is to attack the underlying cause, and end the Fed.

Thu, 02/03/2011 - 11:47 | Link to Comment MachoMan
MachoMan's picture

I think what you will find is that congress picks up where the fed left off...  although, I would like to find out.

Thu, 02/03/2011 - 09:13 | Link to Comment virgilcaine
virgilcaine's picture

Millions of Muslims breaking free under the jackboot of US $$ ME Dictatorship Supported Policy..Oil is going to skyrocket.

 

vc

Thu, 02/03/2011 - 09:23 | Link to Comment ak_khanna
ak_khanna's picture

The primary thing driving up commodity prices worldwide are speculators armed with cheap money provided by central bankers and super fast computers. This is causing a havoc in the lives of rest of the population and pushing them towards poverty as they can no longer afford the basic necessities of life.

Regulators are either hand in glove with the banksters or are too slow to react and take ages to identify and take measures to solve the problems.

Total ban on speculation and the reinforcement of Glass Steagall Act is strictly required to bring relief to the man on the street.

http://www.marketoracle.co.uk/Article24581.html

Thu, 02/03/2011 - 09:30 | Link to Comment topcallingtroll
topcallingtroll's picture

It would have been less distortive if benny had let anyone with a credit score above 500 borrow from the fed at 0.5 percent also. Helicopter cash is more fair.

Thu, 02/03/2011 - 09:41 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

Just what the hell is the end-game here??

Country collapse, poverty, starvation, war, famine?

What the hell is wrong with the bureaucrats?

Can't understand why some are so explicitly malicious.

Fuck you Ben

Thu, 02/03/2011 - 18:16 | Link to Comment StychoKiller
StychoKiller's picture

You keep calling for a "total ban on speculation" without ever explaining precisely how one can tell the difference between speculation and legitimate hedging; therefore, junk for you!

Thu, 02/03/2011 - 10:28 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

Bought some Brent this morning...seriously considering buying a lot more.

Thu, 02/03/2011 - 11:00 | Link to Comment Camtender
Camtender's picture

Buy copper at 66% discount, its called the penny (1982 and older).  Once again, is copper the new gold?  I sure hope not as I am deep the PM's - not so much base metals.......

Thu, 02/03/2011 - 12:57 | Link to Comment bruinjoe93
bruinjoe93's picture

The PMs will re-assert themselves.  There is a clearly defined volatility squeeze occuring in gold and silver.  It will pop either higher or lower.  As Tyler said earlier, once gold and silver move it won't stop.  With all the economic and social disorder what way do you think the move will be? The market is giving us a hint.  The soft commodities (rice, sugar, wheat, cotton) and basic metals are going up.

Thu, 02/03/2011 - 11:28 | Link to Comment surfersd
surfersd's picture

brent wti going to $20. Say good bye to anyone who bought March WTI thinking it was the way to get long the ME crisis.

 

Thu, 02/03/2011 - 12:28 | Link to Comment Grand Supercycle
Grand Supercycle's picture

EURUSD daily chart rising wedge confirmed. A new leg down begins.

The Dollar rally and equity correction gets closer…

http://stockmarket618.wordpress.com

Thu, 02/03/2011 - 13:25 | Link to Comment Slipmeanother
Slipmeanother's picture

The phone system in South Africa is down for extended periods due to copper wire theft. Scrap meatl dealers are the new biz model

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