Wednesday, 23 Feb 2011Reuters reported that prompt physical coal prices for South African and delivered Europe cargoes rose by up to USD 1 in line with oil prices which hit a 2 and a half year high due to unrest in Libya.
Traders said that the whole energy complex strengthened in reaction to the Libyan situation. European power forward prices also rose sharply, spurred by gains in oil, gas, carbon and coal.
One European trader said that "Nobody's buying coal in Europe or Asia but the market is still going up, following oil."
Clashes in oil producer Libya pushed benchmark Brent crude to over USD 105 a barrel on fears of oil supply disruption.
Earlier this month, coal analysts had warned that spreading Middle East unrest could have a significant impact on coal prices by causing oil price spikes.
Aside from pockets of demand in countries which need more coal-fired power, such as Finland or Turkey, European spot demand has been minimal for the past few weeks.
Traders said that the whole energy complex strengthened in reaction to the Libyan situation. European power forward prices also rose sharply, spurred by gains in oil, gas, carbon and coal.
One European trader said that "Nobody's buying coal in Europe or Asia but the market is still going up, following oil."
Clashes in oil producer Libya pushed benchmark Brent crude to over USD 105 a barrel on fears of oil supply disruption.
Earlier this month, coal analysts had warned that spreading Middle East unrest could have a significant impact on coal prices by causing oil price spikes.
Aside from pockets of demand in countries which need more coal-fired power, such as Finland or Turkey, European spot demand has been minimal for the past few weeks.
(Sourced:reuters)
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