Coal prices to double in 2008?
First $100 a barrel oil. Soon $100 per metric ton coal?
Citigroup is forecasting the price of thermal coal to nearly double in 2008-09 from its current price of $55 per ton. And that doesn’t reflect the cost of anticipated carbon regulation. The price spike has more to do with weather than climate. A harsh, snowstormy winter is chilling mining activity in China and flooding has washed out production in Australian mines.
It’s the second batch of bad news for coal to come from the bank in less than a year. In July, a Citigroup analyst advised against investing in coal companies due to a variety of concerns. It noted that natural gas is grabbing a bigger share of power-generation, and that new “clean-coal” technologies have failed to develop and remain a decade or more away. (more…)
Comments
Leave a Reply
About
This site about power resources in any possible way.