An economist from the global analytics firm Kpler has provided a detailed forecast for the commodities market in the coming year, pinpointing several critical factors that will shape its trajectory.
Key Drivers for the Coming Year
Reid I'Anson, an economist at Kpler, joined BNN Bloomberg to discuss the outlook for 2026. The analysis centers on the interconnected dynamics of oil, copper, and global power demand. According to I'Anson, these three elements will be pivotal in determining price movements and market stability across the commodities complex.
Oil Markets and Geopolitical Influences
The outlook for crude oil remains a focal point, with traditional supply-demand balances now heavily influenced by broader energy transition policies and ongoing geopolitical tensions. I'Anson's analysis suggests that while traditional demand centers may see moderated growth, volatility will persist due to these external factors.
The Critical Role of Copper and Electrification
Copper is highlighted as a bellwether for the global shift toward electrification and renewable energy infrastructure. Increased demand for electric vehicles, grid expansions, and renewable power projects is expected to keep pressure on copper supplies. I'Anson notes that this metal's performance will be a direct indicator of the pace of the global energy transition.
Furthermore, the overall demand for electrical power is a unifying theme. As economies pursue decarbonization, the strain on power grids and the raw materials needed to build them—from copper for wiring to other metals for generation and storage—will create new patterns in commodity consumption and investment.
Broader Economic Implications
The insights from Kpler underscore that the commodities market in 2026 will not operate in isolation. Its performance will be a key signal for global economic health, inflationary pressures, and the tangible progress of climate-related initiatives. Investors and policymakers alike will be watching these trends closely as they make decisions for the year ahead.
The full interview with Reid I'Anson, which delves deeper into specific price projections and regional analyses, is available to view on BNN Bloomberg.
