Samvat 2078: Demand to fuel supply crunch-driven rally in metals, crude oil

Auto manufacturing getting a big push from EVs, and global air traffic normalising are also likely to be major contributors on the demand side for metals and crude oil

A supply crunch-driven rally in metals and crude oil witnessed in the outgoing Samvat 2077 is expected to continue into the new Samvat 2078 as well, given that a sharp recovery in demand is seen as fears of the Covid-19 pandemic recede.

Overall, an improved demand, automotive (auto) manufacturing getting a big push from electric vehicles (EVs), and global air traffic normalising are likely to be major contributors on the demand side for metals and crude oil.

All base metals outperformed this Samvat year, with returns ranging between 30 per cent and 100 per cent. Crude oil prices have doubled.