Uranium Will Peak in 2009, Lehman Says

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Uranium will average $120.06 a pound this year, rising to $167.49 in 2009, New York-based analysts Rohit Ogra and Edward Moore said in a report on Friday.

Uranium prices will rise through at least 2009 and won't "stabilise" until after 2015 because demand for the fuel is expanding faster than supply, Lehman Brothers Holdings forecast.

Uranium will average $120.06 a pound this year, rising to $167.49 in 2009, New York-based analysts Rohit Ogra and Edward Moore said in a report on Friday. Prices will probably drop below $70 in 2017. Uranium sold for $6.75 a pound as recently as 2001.

"Unlike some other commodities, such as aluminium and coal, prices for uranium are driven not by massive Chinese buying but by two decades of limited investment in the nuclear sector, and, along with that, limited investment in uranium mining," the analysts said in their report.

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