Uranium stocks are becoming collateral damage in the sell-off in oil over the last couple of months. Since mid-July, oil is down around 20% from $102 per barrel to $83 as of October 201. This has also become a problem for many uranium stocks. Uranium Energy Corp. is down around 27% in the three months ending October 20 2, Fission Uranium Corp. has lost over 30%,3and big uranium producer Cameco Corp. is off 20% in the same time frame.4
‘I guess the market thinks you can put oil in a nuclear reactor,’ said Steve Todoruk, who joined Sprott Global Resource Investments Ltd. in 2003.
I protested: ‘couldn’t cheap oil reduce demand for nuclear power?’
Steve explains why he doesn’t think that’s the real explanation:
So why did uranium stocks take a dive along with oil, when the price of uranium itself rose?
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.