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...