INN looks at a few of the major news stories in the uranium and oil and gas sectors during the month of August. Watch to learn more.
As summer draws to a close, the energy sector is beginning to ramp up again.
Here the Investing News Network takes a look back at some of the biggest news stories in the uranium market and the oil and gas sector over the month of August.
Uranium in August
The month started with Cameco’s (TSX:CCO,NYSE:CCJ) Australian division receiving some favorable news when the Western Australian Court of Appeal ruled in its favor regarding an environmental permit for the Yeelirrie uranium project.
The appeal was launched earlier this year by a local environmental group after the federal government granted the permit for the uranium miner’s Western Australia project.
Despite the favorable ruling, Cameco said it will take its time to develop what is believes to be the largest undeveloped uranium deposit in the country.
A depressed uranium spot price and reactions to the US Section 232 investigation continued to weigh on the sector, with several producers releasing statements about President Donald Trump’s decision to hold off on domestic quotas and convene another study group.
Ur-Energy (TSX:URE,NYSEAMERICAN:URG) offered a positive outlook, noting that it looks forward to working with the new nuclear energy group. Laramide Resources (TSX:LAM,OTC Pink:LMRXF) was less optimistic, citing the continued uncertainty the move from Trump has caused.
Late in the month, Kazatomprom, the national uranium producer for Kazakhstan, announced it will reduce production by 20 percent through 2021.
The company, which is the largest uranium producer, believes market oversupply warrants a restricted approach and will help stabilize the sector.
Oil and gas in August
As Canadians gear up to head to the ballot box, the CEOs of three Alberta-based natural gas companies have issued an open letter calling on the country to consider its energy future at the polling station.
The letter acknowledges the challenges the world is facing in relation to climate change and calls for more innovation in the energy industry.
The missive was the second time the oil and gas sector had issued a public statement in as many weeks.
In a mid-July, an open letter from nine natural gas CEOs called on Alberta Premier Jason Kenny to show bold leadership. Producers called for a freeze on royalty payments and self-imposed output caps to help bolster the price of Canadian gas.
Internationally, tension over the ongoing trade dispute between Washington and Beijing continued to weigh on the demand outlook for oil. The price of crude saw some positive movement late in the month after Trump indicated on August 26 that a resolution might be close at hand.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.