LONDON, April 4 (Reuters) – European physical coal prices
fell along with other energy markets on Wednesday, but coal’s
slide also reflected its oversupply and poor demand in Europe.
Benchmark Brent crude oil fell below $123 a barrel, and
benchmark UK gas prices dropped to a four-week low as poor
demand in Europe and healthy U.S. oil stocks sapped buying
interest.
Additionally, the coal market remains oversupplied as
exports from key suppliers along the Atlantic basin have been
rising while European demand is low and stocks are healthy.
As a result, Bank of America Merrill Lynch (BoAML) on
Wednesday lowered its 2012 thermal coal price outlook, while
keeping in place its expectations for 2013 prices.
PRICES
A May South African cargo was bought for $103 a tonne,
according to GLOBALcoal, down around $1 on the previous day.
A May DES ARA cargo saw a bid/offer range of $95 to $103 a
tonne, and the spread on a June cargo was at $97 to $98.60, down
around 80 cents on the day.
(Reporting by Henning Gloystein; editing by James Jukwey)
© Thomson Reuters 2012 All rights reserved
