Coal prices in Europe rose by 7.6 percent

Coal prices in Europe rose today to a new record, as European governments race to avoid a disaster in the energy sector during the coming winter, in light of the continued reduction in natural gas supplies coming from Russia, which represents about half of Europe’s consumption.

The price of standard contracts for coal in Europe rose today by 7.6 percent to 345 dollars per ton, which is three times the price during the same period last year.

The prices of future contracts for delivery next year in Amsterdam, Rotterdam and Antwerp also rose after the increase in demand for coal to operate power plants in Europe, with the aim of saving the consumption of natural gas that was used to generate electricity.

Natural gas prices rose in European trading today by more than 35 percent against the backdrop of Russia’s recent announcement that it will continue to stop pumping gas through the Nord Stream 1 line for an indefinite period.

While natural gas deposits in Europe have been filled up faster than expected, concerns are still growing about how to cover the shortfall in gas supplies coming from Russia in the winter season, which is witnessing the peak of gas consumption on the continent, noting that Germany may not be able to reach the targeted storage rates of 95 percent of the total storage capacity by the first of next November.

Source: Agencies