Coal prices rose above $145 per ton in mid-September 2023, nearing their highest level in the past three months. This price increase is attributed to existing tensions in the Middle East and their impact on oil and natural gas prices, leading to a shift towards coal for electricity generation.
Impact of Middle Eastern Tensions on the Energy Market
The International Energy Agency (IEA) has stated that disruptions caused by these tensions have led to increases in oil and natural gas prices, and as a result, the inclination to use coal as an energy source has risen. This change in energy consumption patterns could have significant effects on global energy markets.
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Forecast for Global Coal Demand
IEA now forecasts that global coal demand will increase by 1.2% this year, reaching a new record. This increase in demand is due to the rise in coal-fired electricity generation in various countries, especially in Asia and Europe. Currently, developing countries continue to use coal due to the need for more sustainable energy supply.
This increase in demand could lead to new environmental issues and necessitates appropriate attention and policy-making in the field of renewable energies. Therefore, it is essential for various countries to strive to reduce dependence on coal and move towards more sustainable energy sources.
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