In this February update our energy reporter discusses uranium news in the US and Australia, and how Trump’s tweets have impacted oil prices.
February was an eventful month for the energy sector.
Watch the video above or read the full transcript below.
The month started with Cameco (TSX:CCO,NYSE:CCJ) announcing plans to partner with Australian technology company SILEX (ASX:SLX,OTCMKTS:SILXF) for a joint venture to further develop and utilize SILEX’s laser uranium enrichment technology.
The companies plan to work together to examine a potential deployment of the technology in the US.
Cameco also made news mid-month when it released its discussion and analysis report. The company remains cautious despite the spot price of uranium steadily trending higher.
The uranium miner believes the modest gains the sector made in 2018 and early this year could be lost if suppliers that reduced production last year decide to ramp up again.
Finally, Australian energy explorer Boss Resources (ASX:BOE) released an updated mineral resource for the Honeymoon uranium mine in South Australia.
The announcement moves the company closer towards a mining restart at Honeymoon, which was previously in production during 2011 to 2013.
Switching gears to the oil and gas sector.
In mid-February, global oil major BHP (ASX:BHP,NYSE:BHP,LSE:BLT) announced that its board had approved a US$696-million dollar fund to develop the Atlantis Phase 3 project in the US Gulf of Mexico. An area that has garnered a lot of interest on the last few months.
Lastly, President Trump took aim at OPEC producers on social media, tweeting in part, “Oil prices getting too high, OPEC, please relax and take it easy.
Hours after he tweeted, the price for a barrel of Brent Crude dropped by 3.63 percent to US$64.81. The President has taken to twitter before to display his disdain for OPEC’s actions, in mid-September 2018 he posted a long tweet which ended with the demand “The OPEC monopoly must get prices down now!”
The move worked, as prices at that time hovered near US$80 dollars a barrel.
That’s it from the energy sector. Make sure you check back next month for the March update.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.