Coal Prices Jump on Russian Gas Cutoff Fears
Reuters - European physical coal prices rose on Monday along with gains in gas, power and crude oil markets across the region, reflecting escalating tensions between Russia and Ukraine.
Cargos for delivery in April to the ports of Amsterdam, Rotterdam and Antwerp (ARA) were trading at $74.25 a tonne at 1720 GMT, up $0.25 from the previous settlement.
Physical cargos for May delivery jumped $0.60 to $74.40 per metric ton.
In the futures market, API2 coal contracts for delivery in 2015 edged up $1.49 to $82.10 a metric ton.
Commodity prices rose on fears that a standoff between Russia and Ukraine could disrupt the shipment of gas from Europe's biggest supplier.
Gas supply fears rose this weekend when Russian forces took control of Ukraine's Crimea region and President Vladimir Putin said he had the right to invade his neighbor to protect Russians there after the overthrow of ally Viktor Yanukovich.
Tensions between Russia and Ukraine gave coal prices an unexpected lift after a sustained period of declines due to global oversupply.
Supply is expected to rise further in April as coal miner Drummond restarts its exports from Colombia.
Drummond halted the shipments pending installation of automated ship loading facilities, which were required by a law that came into force in January.
(Reporting by Oleg Vukmanovic; editing by Jane Baird)