Commodity Market Updates, Dec 26: Copper, Aluminum at record highs; Crude oil futures advance amid rising geopolitical tensions

Crude oil futures

Crude oil futures for January delivery were trading ₹15 or 0.28% higher at ₹5,287 per barrel in 15,610 lots on the Multi-Commodity Exchange (MCX) on Friday, December 26, amid rising geopolitical tensions.

Similarly, crude oil contracts for the February expiry increased by ₹13 or 0.25% to trade at ₹5,299 per barrel, at around 1:05 pm.

Globally, West Texas Intermediate crude was trading 0.29% higher at $58.52 per barrel, while Brent crude rose 0.12% to $62.36 per barrel in New York.

The rise in crude oil prices comes on the back of heightened tensions between the US and Venezuela, and the US’s recent military activities in Nigeria.

Copper futures

On the MCX, copper futures for the January expiry surged as much as ₹105.5 or 9% to a fresh record high of ₹1,277.95 per kilogram. Contracts for delivery in February were also at their all-time high of ₹1,296.85 per kilogram.

On the Comex, copper futures for January delivery rose to hit an intraday high $5.72 per pound.

Copper price has so far this year jumped over 50% amid reports of a shortage of the red metal.

A JPMorgan report stated that the copper market has tightened significantly on the back of acute supply disruptions, sending prices soaring.

"In September, a fatal mudslide occurred at Grasberg in Indonesia — the world’s second largest copper mine — triggering a force majeure; the Grasberg Block Cave portion of the mine, which accounts for 70% of previously forecasted production, is expected to remain closed until the second quarter of 2026. Elsewhere, production guidance at the Quebrada Blanca copper mine in Chile has been downgraded due to operational challenges, further compounding the global shortage," JPMorgan said in a report.

Aluminium futures

Aluminium futures (for January delivery) rallied as much as ₹9.05 or 3.14% to a lifetime high of ₹297.20 per kilogram on Friday on the MCX, amid supply jitters.

Similarly, aluminium for expiry in February soared to a record high of ₹299.85 per kilogram.

Zinc futures

Zinc futures for delivery in January were trading ₹6.45 or 2.11% higher at ₹311.50 per kilogram on the MCX in lots of 4,811.

Meanwhile, zinc contracts for the February expiry stood at ₹308.35 per kilogram, up by ₹5.05 or 1.67%, at the time of writing.