Goldman Sachs, Macquarie and some hedge funds are looking to buy uranium amid rising prices, as many countries seek to increase nuclear power generation to meet climate goals while reducing the need for fossil fuel imports. We are increasing spot trading and options trading.
Goldman has increased trading in physical uranium and created uranium-trading derivatives by writing options on physical uranium for hedge funds, hedge fund and trading industry sources familiar with the trade told Reuters.
While investment banking giant Goldman Sachs primarily deals with hedge funds and other financial clients, Macquarie is increasingly trading uranium output from miners, people with ties to both banks said. told Reuters.
Uranium is in a bull market as many countries look to expand their use of nuclear power in a renaissance in uranium technology following the energy crisis and Russia’s invasion of Ukraine.
At the COP28 climate change summit late last year, the United States and 21 other countries agreed that by 2050 it was critical to further incorporate nuclear power into the energy mix to achieve net-zero targets in the coming decades. has pledged to triple its nuclear energy production capacity.
“This declaration affirms the critical role that nuclear power will play in achieving net-zero global greenhouse gas emissions by 2050 and keeping the 1.5 degree Celsius goal within reach,” the U.S. State Department said. I am aware of it.”
As a result of the resurgence of nuclear energy, Kazatomprom, the world’s largest uranium miner, said in January that uranium prices could reach a 16-year high due to sulfuric acid shortages and construction delays at newly discovered deposits. After the announcement, uranium prices soared to a 16-year high earlier this year. The company has not met its production targets, so challenges may remain until next year.
With supplies tight, uranium prices have doubled in the past year to more than $100 a pound, and Western miners are looking to ramp up production.
For example, U.S.-based Uranium Energy Corporation announced last month that it would restart uranium production at a fully permitted factory in Wyoming, as the resurgence of nuclear power generation is creating a new bull market for uranium. did.
Written by Tsvetana Paraskova, Oilprice.com
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