Uranium is at a 7-year high thanks to a single fund that has reportedly gobbled up 24 million pounds of the commodity

• Uranium is surging thanks in part to one fund eating up hundreds of thousands of pounds per day.
• The Sprott Physical Uranium Trust has purchased over 24 million pounds of uranium.
• That has coincided with uranium futures reaching $40.25 per pound, the highest level since futures briefly scraped $44 in 2014.

Uranium is surging thanks in part to one fund amassing hundreds of thousands of pounds per day, according to a report from Bloomberg.

The Sprott Physical Uranium Trust, the world's largest fund holding the actual commodity rather than futures contracts, has grown swiftly since its July launch, shooting up more than 50% in line with the soaring heavy metal. Now with over $1 billion in assets, the trust has been gobbling up all the uranium it can get its hands on.

Sprott has purchased over 24 million pounds of uranium, including more than 500,000 pounds in just one day, according to Bloomberg. That has coincided with uranium futures reaching $40.25 per pound, the highest level since futures briefly scraped $44 in 2014.

Market dynamics have also boosted the heavy metal, as uranium-dependent utilities adjust to renewed energy demand. At the same time, the biggest uranium miner, Kazakhstan's Kazatomprom, has committed to reduced production levels through 2023 in anticipation of uncertain demand, according to Dow Jones.

Despite lower production, higher prices meant the company's net profits jumped 32% year-over-year in the first half of 2021, according to Reuters.

Energy demand has rippled across other commodity markets, too, with natural gas and crude oil prices nearing multi-year highs after reaching historic lows during the pandemic. Yet strong demand and higher prices have not been enough to revive US oil production, which has fallen and is set for further declines.