It has been our thesis for a while that a big uranium SHORTAGE is coming in this decade
Uranium miners are likely to benefit from this trend and have been enjoying a strong run up over the last few months. Yet uranium miners ($URA $etf) have been diverging from Uranium spot price recently. One fundamental explanation for this is that the Uranium "large caps" which are over-represented in the URA ETF have long-term contracts which means there are not benefiting to a full extent from recent Uranium spot price. Source chart: Game of trades
Copper demand and projected demand
By Robert Friedland
Uranium 16-Year High 🚨: Uranium has now surged past $85 per pound for the first time since January 2008
Source: Barchart
Bloomberg Commodity Index drops to 2-year low as investors grow increasingly nervous about demand
Source: HolgerZ, Bloomberg
Maybe oil is not that irrational... As shown on the chart below, Oil (purple line) keeps following the Citigroup US Macro Surprises index (yellow line)
The weaker the data, the lower the prices. Sounds logical. Source: TME
BREAKING: Crude oil prices drop below $70/barrel for the first time since July 2023
Since the September 28th high, oil prices are now down ~27%. Meanwhile, the national average gas price is down for 10-straight weeks to $3.25/gallon. Even as OPEC+ agreed to additional supply cuts last week, oil markets are selling off. A welcomed development for global liquidity, for inflation and for the Fed. Source: The Kobeissi Letter
The bull market none is talking about. Uranium prices are surging as nuclear is seen as one of the only "clean" energy source to move away from fossil fuels
Source chart: (((The Daily Shot)))
Uranium narrative has been making headlines this year. Just in 2023, Uranium is up by nearly 60%
Prices are now back above the levels seen before the Fukushima incident in March 2011. Simultaneously, uranium prices also major tailwinds from a supply deficit in the coming years, especially in the U.S. By 2028 a shortfall of 60% is expected... Meanwhile, a long list of countries sees nuclear as one of the only "clean" viable option... Source: Game of Trades
