Energy commodities were muted most of the day Tuesday, with oil (USO) down for the majority of the session, gasoline and diesel lower on the day, natural gas (UNG) flat and thermal coal down over 6.0%.
However, bullish notes from Goldman and Jefferies lifted energy equities throughout the day, despite energy commodities trading lower and the broader market trading either side of flat through most of the session.
Near the close, Bloomberg reported that the White House is seeking funds to acquire enriched uranium, a step that could lead to a Russian uranium import ban (URA).
As equity markets rallied into the close, energy equities followed; high beta names like W&T (WTI), Laredo (LPI) and CRV (CVI) led the sector higher, even laggard Par Pacific (PARR) caught a bid, trading up 11% on the day.
Coal too rallied, after Jefferies raised its commodity price outlook, names like Arch (ARCH) and Warrior (HCC) traded up over 10%.
Uranium names traded up in a straight line following reports the White House plans to purchase the carbon-free fuel, with industry leader Cameco (CCJ) up 8%, Energy Fuels (UUUU) up 13%, and Denison (DNN) up 7% on the day; the Sprott physical uranium trust (OTCPK:SRUUF) traded up ~5% into the close.
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