Posted on 03/09/2022 10:29:28 PM PST by fluorescence
Just as oil prices soared above $115 per barrel and European gas prices moved up to $60 per mmBtu, coal markets have been suffering through some turmoil of their own. Global coal prices surged some 30% in one week, primarily triggered by fears of Russia’s coal supply not hitting the market as several rounds of US/EU/UK sanctions made it complicated to arrange financial lines with Russian sellers. The Asian Newcastle benchmark futures contract rose to $440 per metric tonne, with Europe’s API2 March ’22 contract trading at the same levels. Moreover, Europe’s futures prices point to a prolonged period of high prices, with the H2 2022 average currently trending above $350 per metric tonne, i.e. triple pre-pandemic levels.
[snip]
China has maintained its ban on Australian coal and is yet to see a full revamp of Indonesian supplies, but robust domestic production has essentially kept the East Asian powerhouse from having a coal price run. Bouncing back from the power crunch of August-September, Beijing relaxed regulatory oversight over the coal industry by fall of last year – the end result is a record high of coal output (4.07 billion) in 2021, output trending above 12 million tons per day, and nationwide coal stocks back at early 2019 levels despite high levels consumption. As a consequence, the Chinese Qinhuangdao price benchmark stands at $150 per metric tonne right now, which – while above the pricing bandwidth set by NDRC – is well below global prices, either in the Asia Pacific region or globally.
(Excerpt) Read more at oilprice.com ...
“....while other countries drive their producers out of business with high energy costs”.
That means there will not be enough producers left standing to meet the demand. That spells disaster.
Alberta has coal. It is too bad my federal government does not want Alberta to benefit from its resources.
That is the plan. Disaster.
Everything is Russia’s/Putin’s fault. Got it. /s
This Russian (gasp) guy on YT showed his after sanctions natural gas heating bill. 1500 sf house, bill came out to 20 dollars US.
China will govern Canada one day.
Coal will be dug again. Relax /s
It's Dan Sheekoz! I like that guy.
Could it be that Biden is being cunning and hoarding our vast reserves of oil , gas, and coal until the Russians and Chinese fail?
Ha, ha, ha, ha, ha, ha, ha, ha……
Biden is pretending he is an outsider and has no control over anything. Just like Obama did.
“This Russian (gasp) guy on YT showed his after sanctions natural gas heating bill. 1500 sf house, bill came out to 20 dollars US.”
That’s cheap except for the fact that he only makes 10 dollars US./sarc
Yep. It’s been very obvious since POS Obama got the nomination.
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