Coal prices are deeper in the black.
All after Europe backed a Russian coal embargo, which is assured to send prices higher.
According to Zero Hedge, “The sanctions package, which also includes a ban on most Russian trucks and ships from entering the EU, was signed off by the bloc’s diplomats Thursday, Bloomberg reported citing people familiar with the matter. It was also coordinated with the U.S. and the U.K.”
Already, since the start of the year, coal prices are up 120%. Year over year, they’re up 300%. Even coal stocks are surging. As a result of the news, Peabody Energy (BTU), for example jumped nearly 6% to $26.54. Arch Resources (ARCH) is up 5.7% to $141.08. Consol Energy (CEIX) is up 4% to $38.05.
Also, for the first time in 14 years, the price of coal is now above $100.
“The surge matches increase around the world as the Ukraine war prompts users to seek alternatives to Russian coal, which accounted for almost 18% of global exports in 2020. That’s exacerbating a surge in demand that began last year as a global economic recovery from pandemic drove up electricity consumption,” added Bloomberg.
In short, investors may still have time to jump into soaring coal stocks.