Proactive Investors - Uranium prices could be set to become “significantly higher” according to analysts at Citigroup (NYSE:C).
The investment bank said disruptions in nuclear supplies because of the war in Ukraine and a potential embargo on Russia’s supplies could send prices higher.
Currently, uranium is trading at US$50.55 per pound.
Citigroup believes the probability of a ban on Russia’s uranium supply is drastically increasing this week following discussions in the US Congress and European Union parliament.
"The main question that could stabilise the situation is the terms on which such ban would be introduced.” said the broker.
“Nevertheless, we project higher uranium prices over the next five years.”
“Increasing nuclear energy capacity and technological developments in nuclear energy could add a disruptive kink in fragile market fundamentals.”