The Economic Illiterati Speak—Energy

Source:

"World uranium requirements are forecast to increase faster than world supply in 2009."

Energy exports will take a big hit in dollar value, falling 34% to $51 billion. This represents lower contract prices for thermal coal and lower spot prices for oil. The two exceptions appear to be uranium and LNG. Both in volume and value terms, the outlook for each is pretty bright, according to ABARE.

"World uranium requirements are forecast to increase faster than world supply in 2009," the agency reports. "As a result, the uranium market is expected to remain in deficit for a sixth consecutive year. Supported by this deficit, spot prices are forecast to recover gradually in 2009 to end the year at around US$62 a pound. . .In 2010, the spot uranium price is forecast to average around US$70 a pound, an increase of 35% on 2009 prices. Strong consumption growth and a decline in secondary supplies of uranium are forecast to support this price increase."

Some good news.

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