Cameco in the newsUranium stocks boosted by rising oil prices and escalating US-Iran tensions
Publisher: U3O8.biz
The price of oil jumped above $92 a barrel for the first time ever in
New York on Friday, mirroring escalating tensions between the United
States and Iran.
The U.S. just announced new sanctions against Iran---which holds the
planet's second-biggest oil reserves---after accusing the country of
aiding terrorist activity.
But above all, the U.S. wants Iran to stop enriching uranium. It fears Iran's plans to develop nuclear reactors for electricity generation is a cover for the secret production of nuclear weapons.
As a result, crude oil contracts and futures are beating records.
Bloomberg reported oil futures closed at $92.22. That's the highest
intraday price since trading began nearly 25 years ago and a rise of
more than 50 per cent from last year.
But while the U.S. and Iran quarrel, uranium investors rejoice. Now
that the metal's spot price has stabilized, there is renewed talks of
a "nuclear renaissance" and investors are again reminded of the role
uranium could play in meeting the world's future power needs.
Ux Consulting and Tradetech---two industry indicators that follow
transactions in the uranium market---both increased their spot prices
for the metal this week by $2 to $80 per pound U3O8. The move marked
the second price increase in a row and boosted investor confidence in
a sector that was in a downward spiral since last summer.
It now seems that a price bottom was indeed reached several weeks ago
at $75 a pound U3O8 and while investors aren't yet flocking back to
the market, demand continues to pick up as cautiously optimistic
buyers return to the sector.
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