• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 7 mins Why Trump will win the wall fight
  • 4 hours Prospective Cause of Little Ice Age
  • 6 hours L.A. Mayor Ditches Gas Plant Plans
  • 6 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 min is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 7 hours students walk out of school in protest of climate change
  • 8 hours Maduro Asks OPEC For Help Against U.S. Sanctions
  • 1 day Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 23 hours Ford In Big Trouble: Three Recalls In North America
  • 1 hour And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 23 hours Why Is Japan Not a Leader in Renewables?
  • 7 hours IT IS FINISHED. OPEC Victorious
Rosneft Boss Wants Russia Out Of OPEC Deal

Rosneft Boss Wants Russia Out Of OPEC Deal

Rosneft’s chief executive Igor Sechin…

China Plans To Build Space Solar Station

China Plans To Build Space Solar Station

Chinese scientists have published plans…

Chinese Coal Futures Spike On Shortage Concerns

Coal shipping

Prices of coal futures in China hit the highest since they were launched three years ago on growing worry about shortages of the fuel as peak winter energy demand continues to be strong, especially in the northern parts of the country.

Reuters reports that today, coal futures reached US$107.49 (679.8 yuan) per metric ton, up more than 1 percent from the Friday close.

Last week, four local utilities warned Beijing in a letter that new heating and electricity shortages were looming over parts of China due to the combination of cold weather and insufficient coal supplies. In the letter, the utilities ask the government to take steps to increase the supply of coal and put a lid on fast-rising prices.

“If the coal inventories don’t rise to a reasonable level by Spring Festival, then it will be really difficult to deal with the drop in temperatures in some key regions and in the winter heating regions,” the companies said.

The situation is dire enough in some parts of the country that there are only supplies for two or three days. At the same time, thermal coal futures have risen by 11 percent since the start of the year, Reuters notes, and so have rail transport costs, aggravating the situation.

One analyst, from Haitong Futures, told Reuters that “The price rally is being driven by blizzard weather across the country, which has blocked highways and even rail transportation in some places and boosted demand for heating.” Xu Bo added, “It is hard to ease tight coal supply in a short period since China is currently at its peak period for heating.”

The 11 percent increase in thermal coal futures is an extension of a rally that began last year, despite Beijing’s efforts to reduce its coal consumption and replace the dirtiest fossil fuel with gas.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News