CAPITAL MARKETS

Another hit to commodities

A SLUMP in copper and oil is wreaking fresh havoc on the share prices of resource stocks.

Kristie Batten

This article is 9 years old. Images might not display.

The Bloomberg Commodity Index fell again overnight to the lowest level zinc 1991.

Copper extended its losses, dropping a further 0.8% to $US4342 per tonne, while oil threatens to fall into the $20s.

IG market analyst Evan Lucas said oil prices were the biggest story in the market right now.

“I fully expect to see oil in the $20 a barrel handle. However, the uber-bears are now suggesting $10 a barrel is a real possibility.

“That would be a dire problem as it will bring the bankruptcy question to bare – there are several estimates that suggest prices under $30 a barrel would mean one third of US oil and gas plays would go broke in six months.”

Shares in Freeport McMoRan – which is primarily exposed to copper and oil – fell by as much as 18% in New York overnight, hitting a 15-year low.

Rio Tinto was the worst performer in London, down by nearly 2.7%.

Elsewhere, gold dropped to $1087.30 an ounce and iron ore fell to $41.19/t.

In good news, the ASX is set to open higher after a positive night for global equities.

[amcsv id="206666" type="commodities"]

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2025

The MNN Research Report 2025 provides insights into critical mining themes in Australia/Oceania, including top projects, C-suite priorities, risk, ESG performance and investor sentiment.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.