ASX uranium shares are launching higher in Friday's session following a similar surge in the energy commodity's price overnight.
The S&P/ASX Energy Index (ASX: XEJ) is Friday's best performing sector. That's likely also helping push the share prices of ASX uranium producers higher.
Let's take a closer look at what's going on with the energy commodity producers on Friday.
ASX uranium shares take off on Friday
ASX uranium shares are in the green today amid reports the commodity's price has hit a new multi-year high.
At the time of writing, the Paladin Energy Ltd (ASX: PDN) share price is leading the S&P/ASX 200 Index (ASX: XJO), gaining 10.62%.
Meanwhile, the share prices of Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE), Peninsula Energy Ltd (ASX: PEN), and Bannerman Energy Ltd (ASX: BMN) are all taking off.
They've gained 9.7%, 9.4%, 14.89%, and 15.74% respectively.
For context, the ASX 200 is currently up 0.5%, as is the All Ordinaries Index (ASX: XAO). The ASX energy sector is also recording a 1.1% gain right now.
The Boss Energy share price is likely also rising on news of the early completion of the company's share purchase plan.
The capital raise – which aimed to raise up to $5 million by issuing new shares for $2.15 apiece – received applications totalling $17.6 million. As a result, the company has scaled back the offer.
What's going on with uranium prices?
ASX uranium shares are gaining amid news the price of uranium reached its highest point in more than a decade overnight.
Uranium futures reached US$61.60 per pound in Thursday's session overseas, according to data from Trading Economics.
It comes as the United States Congress passed legislation to remove Russia's preferential trade status and to ban Russian oil and gas imports, according to reporting by the New York Times.
It's yet another move to financially punish the former-soviet nation for its invasion of Ukraine.
While the legislation still needs the approval of US President Joe Biden, the publication said it was expected to be instigated.
The United States relies on nuclear energy for a significant chunk of its electricity. It also imports much of its uranium from Russia and its allies.
Thus, a potentially changed trade relationship – and resulting tariffs – could impact the supply of the nuclear fuel, boosting its value.
Additionally, the United Kingdom recently announced it's planning to build up to eight nuclear reactors as part of its energy security strategy.
The plan will help the nation phase out its use of Russian oil and coal this year. It's also aiming to ditch Russian gas as soon as possible.
