• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 3 mins Shale Oil Fiasco
  • 57 mins USA v China. Which is 'best'?
  • 2 hours Everything you think you know about economics is WRONG!
  • 42 mins Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 1 day Tesla Launches Faster Third Generation Supercharger
  • 12 hours Quotes from the Widowmaker
  • 43 mins Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 1 day Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 1 day Offshore is changing
  • 17 hours True Confessions of a Billionaire
Alt Text

Should We Rethink Nuclear Power?

Nuclear energy has received a…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

It's Official -- Japan Is Back In The Nuclear Business

It's official -- Japan is back in the nuclear business. Again.

Sources from Japanese utility Kyushu Electric confirmed Thursday that the No. 2 Sendai nuclear reactor was restarted this week. With the plant now expected to return to full operating capacity.

That comes just two months after the No. 1 Sendai reactor was restarted in August which, at the time, was the first nuclear plant to come back online since Fukushima in 2011. Related: Cheap Gas Claims Another Nuclear Victim

There's been a lot of press around the event in the uranium community with speculation running high that the restart could give a further psychological lift to the metal.

Trading in the uranium market the last few months indeed lends some support to this view. With the uranium spot price having risen about 5 percent since the No. 1 restart -- to $38 per pound, representing the highest price since April.

If the news about the No. 2 fire-up can push prices above $40, they'll be approaching the levels we saw in the late-2014 spike -- when speculation about Japan's return to nuclear power drove prices from $28 to as high as $44 in a matter of months. Related: Can China’s SPR Rescue Oil Markets?

The bottom line is, this can't hurt for uranium investors; although the story could be different in other parts of the energy market.

Especially crude oil. With sources from Kyushu Electric telling Platts the company expects to greatly reduce its crude and fuel oil demand after the No. 2 restart.

The utility now estimates it will burn just 629,000 barrels for the December to March 2016 period -- down a stunning 87 percent from the 5 million barrels consumed during the same period last year. Related: VW’s Dieselgate Scandal Could Cost Up To $87 Billion In Total

That's going to particularly affect Indonesian crude exports. With Indonesia's high-acidity crudes having been a favourite for direct burning by utilities in Japan.

Keep an eye on both the uranium and oil markets for some potential readjustments over the coming months.

Here's to doing it all again,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Carl Rimmer on October 16 2015 said:
    In other news radioactive water continues to spill into the Pacific!!

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play