Thermal coal prices going higher due to Columbian strike.
Feb. 8, 2013, 11:21 a.m. EST
Refiners forge ahead, lead energy stocks
Coal miner strike in Colombia to support U.S. coal markets
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) —
Colombian coal miners have started a strike on Thursday, and supply disruptions in Colombia have the potential to tighten thermal coal markets, analysts at Simmons & Co. said in a note.
Strong Colombian production has contributed to recent weakness in coal prices, they added.
Lengthy disruption could push thermal coal prices higher and help U.S. exports “again become competitive into Europe,” the analysts said. In 2012, 73% of Colombia’s thermal coal exports went to Europe, with the Netherlands the largest recipient.
Colombia is the world’s fourth largest exporter of coal, according to the Energy Information Administration.
Add up the all time low price, historical blizzard, and Colombian coal miners strike and OXF should rally significantly very soon.