Copper prices are expected to rise, as the transition to green energy accelerates and the supply of the metal tightens, says Goldman Sachs.

Based on an expected spike in demand, coupled with an already tight market in the wake of the pandemic, the firm raised its forecasts on copper. Goldman now sees prices average $11,000 per metric ton over the next 12 months. 

On Wednesday copper traded around $8,900 per ton, according to data from the London Metal Exchange.

“Copper is the new oil,” Goldman said, adding that there’s “no decarbonization without copper.”