Giant oil and gas trader Mercuria has reportedly entered physical trading in uranium, potentially joining other major commodity companies betting on a nuclear energy boom. The World Nuclear Association predicts a doubling of nuclear fuel demand by 2040 driven by surging global electricity needs.

Mercuria, based in Switzerland, has ventured into the metals business using profits from high oil prices. Uranium market demand is small compared to other commodities, but prices have surged due to the global energy crisis. Citibank predicts spot prices reaching $100 per pound in 2026.

The uranium market is in a supply deficit, posing challenges for nuclear operators. Uranium trading involves specialized participants, leading to market volatility. Governments worldwide are positioning nuclear energy as critical infrastructure. Uranium equities have surged, with investors reevaluating the sector’s potential.

Shares of uranium and nuclear stocks have dramatically outperformed the market, with companies like Oklo Inc., Centrus Energy, and Energy Fuels seeing significant gains. Oklo’s partnerships with Liberty Energy and Vertiv aim to revolutionize data center operations with clean power solutions.

Bank of America downgraded Centrus’ shares but raised the price target, citing valuation concerns after a significant increase. Centrus achieved a production milestone of High-Assay Low-Enriched Uranium (HALEU) crucial for advanced nuclear reactors. HALEU is enriched to 5-20% Uranium-235, making it vital for small modular reactors and microreactors.

Read more at Yahoo Finance: Giant Oil Trader Begins Physical Trading In Uranium