ASX uranium shares are soaring today amid a positive outlook for the uranium price.
Among ASX uranium shares surging today are Peninsula Energy Ltd (ASX: PEN) and Bannerman Energy Ltd (ASX: BMN). Close on their tails are Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN).
So why are ASX uranium shares surging?
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Uranium price lifts ASX uranium shares
Peninsula shares are surging 14% today, while Bannerman shares are rocketing 16%. Meanwhile, the Deep Yellow share price is rising 9%, Boss Energy is jumping 8%, and Paladin is up 7%, at the time of writing.
ASX uranium shares are lifting amid a rise in the price of the metal. Uranium is used in nuclear power plants.
Bank of America raised the price target of uranium all the way up to 2027, the Australian Financial Review reported.
An analyst at the bank lifted price predictions by 13.5% to US$60.70 a pound in 2022. Meanwhile, the price could hit US$66.90 a pound in 2023, a 38% increase. In 2027, the analyst tips the price to be US$50.
The Ukraine and Russia war is not disrupting shipments but sparking future concerns, the analyst noted. Bank of America analyst Lawson Winder commented on the uranium outlook:
To the best of our understanding, the war has not yet contributed to a direct disruption of shipments of Russia uranium products to the rest of the world.
Rather, the price increase has been driven by concern about future disruption and a desire by market participants to lock in supplies in anticipation of that possibility.
Uranium futures jumped 0.32% to US$63.70 pounds in global markets overnight. This was the highest level since the Fukushima disaster of 2011, Trading Economics reported. The uranium price has surged nearly 112% in a year. In recent days, news out of the United Kingdom may have lifted the price of uranium. The UK is planning to build eight new nuclear reactors by 2030.
