OPEC Causes Oil Rally, Coal Price at Highest Level in Almost 3 Years
The coal price extended gains on Monday (31/07) amid the crude oil rally that has been triggered by OPEC agreements. On Monday the price of coal (January 2018 contracts, the most active contract on the Rotterdam commodities exchange) rose 1.08 percent to USD $79.35 per metric ton, the highest level in nearly three years (while in early trading the price had actually tumbled 4.52 percent).
Meanwhile, at the last trading day last week, the coal price rebounded 1.36 percent to USD $78.50 per metric ton.
Rising coal prices are related to crude oil price movements. West Texas Intermediate (WTI) closed above the level of USD $50 per barrel in late trading on Monday after OPEC cut shipments to the US and scheduled meetings with non-member countries.
WTI (September delivery) gained 0.9 percent to USD $50.17 a barrel on the New York Mercantile Exchange. Meanwhile, Brent oil for September delivery closed higher 0.2 percent to USD $52.65 a barrel on the London-based ICE Futures Europe exchange.
According to an OPEC statement, representatives from several OPEC and non-OPEC countries will meet in the capital of the United Arab Emirates on 7-8 August to discuss why some countries are not fully implementing their commitment to reduce crude oil production.
On the other hand, US crude oil imports from OPEC member countries fell 2.6 percent in May, and some of OPEC's top exporters have pledged to reduce shipments further next month.
The oil price has strengthened amid growing signs that the market is returning to a point of equilibrium, with the price rising above the 200-day moving average last week for the first time since May.
Coal Futures (January 2018 Contract):
| 25 July | 26 July | 27 July | 28 July | 31 July | |
| Price (USD/ton) |
77.75 | 77.55 | 77.45 | 78.50 | 79.35 |
Source: Bisnis Indonesia