• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 2 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 10 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Martin Tillier

Martin Tillier

More Info

It’s Time To Sell Coal Stocks

Trading is, by nature, short-term. It involves rapid reaction to news and anticipating what that will mean for whatever you are trading in the next few minutes, hours, days, or sometimes weeks. At times though, it pays to take a step back and consider the bigger picture. That is the case right now, as coal stocks have reacted positively to good short-term news but the long-term negative narrative persists.

The good news that caused the recent strong rally came, as all news these days seems to, came from Donald Trump. Reports circulated earlier this week that he had instructed Energy Secretary Rick Perry to forestall the closure of coal and nuclear powered electric plants by forcing utilities to buy from them, even at uncompetitive rates.

This is the administration’s second attempt to protect the domestic coal industry. The first was a proposal by Perry that compensation should be paid to the ailing plants for the “stability” they give to the power grid. That was unanimously rejected by regulators. The proposed use of an executive order this time around circumvents the need for regulators’ approval but looks just as doomed to failure.

America is a country built on free markets, and government attempts to regulate away reality, no matter how well-intentioned, usually fail as they butt up against unintended consequences. In this case the downside is glaringly obvious. Forcing providers of electricity to buy at inflated prices will force…




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