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In this update, our energy reporter talks about the most important uranium, oil and gas news during the month of March.
March was a bit of a slow month for the energy sector.
The uranium market is still awaiting the US decision on Section 232, while the oil and gas sector is still grappling with cutting production to support prices.
In this March update, our energy reporter Georgia exploresuranium news from Australia, and how Saudi Arabia is leading the way for an oil price rally. Watch the video above or read the full transcript below.
U308 was a major topic of conversation at this year’sProspectors & Developers Association of Canada (PDAC) convention in Toronto.
We spoke to Mercenary Geologist Mickey Fulp about whether it’s time to invest in uranium stocks.
“I bought all my uranium stocks quite a while ago and most of them haven’t moved much, but it’s coming. I can’t tell you when it’s going to come, but it will come. There will be a uranium shortage at some point, there will be great demand and the price will go up. The stocks are very dependent on the spot price and have been for a number of years,” Fulp said.
Lobo Tiggre, CEO of Louis James LLC, agreed that now is an ideal time to get in the uranium market.
“I think uranium is happening now. I think there’s a particularly great opportunity for investors in that the stocks have been hammered with the broader equities. You could see this last quarter … the uranium stocks would go down with everything else even if uranium was up at that time. So a divergence in price and value [is] an opportunity for investors,” Tiggre said.
Outside of PDAC, Australian uranium developer Boss Resources (ASX:BOE) completed Phase 1 of itsHoneymoon mine restart.
Honeymoon is one of five operable uranium mines on the continent and has been out of production since 2013.
US-based uranium miner Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) released itsfull-year results. The results include initial totals from the company’svanadium restart, which commenced late last year.
Now, switching gears to the oil and gas sector.
The month started with the price of Brent crude sitting at roughly US$65 a barrel.
It steadily trended higher following an announcement that Saudi Arabia wouldreduce its output to below 7 million barrels per day.
Last year, the country, as well as other members of the Organization of the Petroleum Exporting Countries (OPEC) andoil-producing countries, agreed to cut production by 1.2 million barrels a day between January and June to help stabilize sinking prices.
Despite the majority of OPEC agreeing to the reduction, member country Libya restarted production at its largest oil field, with estimated output hitting 1.7 million barrels a day.
The current price of Brent crude is US$66.42 a barrel, and West Texas crude is US$58.59 a barrel.
That’s it from the energy sector for March. Check back next month for the April energy update.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.