* Minimal demand seen in Europe, Asia
* ARA stockpiles fall slightly
LONDON Jan 4 (Reuters) – Physical prompt coal prices
moved slightly higher on Wednesday, in line with gains in oil
due to growing tension between Iran and the United States and
European Union.
Coal would not be immune to a spike in oil prices if the
United States and EU decide to place an embargo on Iranian oil
imports and this escalates, traders said.
The U.S. and EU on Wednesday agreed in principle to ban
Iranian oil imports but have yet to decide when an embargo would
come into effect.
Iran has threatened to close the Strait of Hormuz to oil
shipping in response to sanctions.
“The impact of any closure (of Hormuz) would be that the
bottom of freight market will fall out and … oil prices
(would) probably reach new record highs,” said Sverre Svenning,
an analyst at shipbroker Fearnleys, based in Oslo.
Key buyers in China and India have remained on the
sidelines, while European demand has been minimal so far this
week as players seek clearer market direction after the New Year
holidays.
The general sentiment is cautiously bearish. Growing supply
is expected to exceed demand enough to trim, rather than slash,
prices, traders and utilities said.
Continued…
