Economics
Coal’s Two-Year High May Force Europe Gas Switch: Energy Markets
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Coal in Europe is trading close to a two-year high as rising demand in China drives up prices around the world, making natural gas more attractive to U.K. and German utilities for producing electricity.
Benchmark coal for delivery next month in northwest Europe reached $108.50 a metric ton yesterday, the highest level since Nov. 7, 2008, and traded today at $105, according to GFI Group Inc. broker data. China faces “a moderate shortage” of the fuel that generates 80 percent of its power after temperatures fell below freezing earlier than usual this year, New York-based Commodore Research said on Nov. 15.