Coal prices soared at the fastest pace in three years after Qatar halted production of liquefied natural gas, prompting power companies to switch to alternative fuels amid concerns that geopolitical tensions could lead to higher fuel prices.
Newcastle coal futures, a widely used Asian pricing benchmark, rose 8.6% to $128.70 a tonne, the highest level for a pre-maturity contract since December 2024.
The jump comes after Qatar’s Ras Laffan facility, the world’s largest liquefied gas export facility, which accounts for about 20% of global supplies, was shut down following an Iranian drone attack, leading to the first complete halt in production in 30 years.
biggest jump
The closures caused gasoline prices in Europe to rise by 39%, the biggest increase in four years.
In Asia, where many countries rely heavily on Qatar’s liquefied gas, Taiwan has announced that it is prepared to ramp up the operation of its coal-fired power plants if gas supplies are disrupted by prolonged outages.
Shares in Australian coal producers also soared, with Whitehaven Coal Limited and New Hope Corp rising more than 5% in Sydney during trading, the best performers in the S&P/ASX 200 index.
Coal prices rose at the fastest pace in three years following the suspension of liquefied natural gas production in Qatar, and power companies are increasingly switching to alternative fuels amid concerns that geopolitical tensions could lead to higher fuel prices.
Newcastle coal futures, a widely used price benchmark in Asia, rose 8.6% to $128.70 a tonne, the highest price for a recent contract since December 2024.
The surge follows the closure of Qatar’s Ras Laffan facility, the world’s largest LNG export facility, accounting for about 20% of global supplies, after it was targeted by an Iranian drone attack, leading to the first complete production halt in 30 years.
biggest jump
The closures caused gasoline prices in Europe to rise by 39%, the biggest jump in four years.
In Asia, where many countries rely heavily on Qatar’s LNG, Taiwan has announced that it is prepared to increase the capacity of its coal-fired power plants if gas supply disruptions are prolonged and impact supplies.
Shares in Australian coal producers also soared, with shares in Whitehaven Coal and New Hope Corp rising more than 5% in Sydney during trading, making them among the best performers on the S&P/ASX 200 index.
