• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 6 hours NordStream2
  • 1 day Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 3 hours US intel warns China could dominate advanced technologies By NOMAAN MERCHANT October 22, 2021
  • 1 day Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 3 days Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 3 days Storage of gas cylinders
  • 3 days "The Hidden Story About California's Container Ship Backlog" via Corbett Report
China Eyes Kazakh Coal As Energy Demand Soars

China Eyes Kazakh Coal As Energy Demand Soars

China, the world’s biggest coal…

Australia Is Making The Most Out Of The Coal Boom

Australia Is Making The Most Out Of The Coal Boom

The recent energy shortage in…

Dave Forest

Dave Forest

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

More Info

Premium Content

Is The Coal Market Finally Capitulating?

If you're a coal investor, there's one piece of data you need to see this week.

New production figures from world-leading exporter Indonesia.

Data released by the Indonesian government this week showed a huge drop in mine output for the first quarter. With overall coal production falling 21% as compared to the first quarter of 2014. Related: The Real History Of Fracking

That equates to a loss of 27 million tons of coal supply. Suggesting that Indonesia's overall output could fall by around 100 million tons this year.

That's a critical observation for the global coal market. Being the first major drop in output we've seen from Indonesia since coal prices started their steep decline in 2011. Up until now, Indonesian production had reportedly been continuing to rise -- as miners tried to compensate for lower sale prices by putting out more product. Related: Huge 100 Billion Barrel Oil Discovery Near London

If a trend toward lower production here holds, it would be a sign that the global coal market is finally capitulating under low prices. And a fall in Indonesian production would be a big step toward getting the market balanced again -- given that the nation is by far the world's largest exporter, especially for key consuming countries like India, China and Japan. Related: Event Horizon: Major Catalysts In These Commodities This Year

One point of caution here is that Indonesia's production statistics are notoriously unreliable. With the numbers often being revised after the fact, due to factors like uncounted output from illegal mines. Indeed, the chairman of the Indonesian Coal Mining Association, Pandu Sjahrir, said he is waiting for confirmation of the government stats before commenting further on the state of Indonesia's mines.

At the very least, this is a happening to put on our radar screens. Watch for further data coming out of Indonesia to confirm this critical trend.

Here's to coal, hard reality,

Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News