Oil prices up while coal and petcoke are stabilising

Oil prices up while coal and petcoke are stabilising
08 June 2022

Since ICR’s most recent energy report, the energy complex is awaiting the impact of sanctions on Russia and the risk of an economic slowdown. Oil prices increased to US$100-115 on the back of the EU’s potential sanctions on Russian oil.

Coal is stabilising after rising on demand before the sanctions in August with Russia offering a discount.

High-sulphur petcoke (6.5%) 40HGI FOB USGC – historical view 2007-22

Meanwhile, petcoke stabilised on a high discount on current levels with increased supply, but there is a return on demand. Freight rates softened slightly but also stabilised, leaving petcoke now in the very cheap zone. In terms of petcoke prices, high-sulphur petcoke (6.5 per cent) trades in the expected range of US$165-200. Resistance is found at US$200, 215, 235 and 250 while support is at US$170, 155 and 115. Multi-year support is at US$35.

Steam coal and petcoke FOB prices - historical view 2007-22

The discount for petcoke FOB with 6.5 per cent sulphur sold at US$176 (compared with API4 3Q22 coal at US$275) is 49 per cent. The discount for petcoke (6.5 per cent sulphur) CIF ARA sold at US$213 (compared with API2 3Q22 coal at US$280), is 39 per cent.

Published under Cement News

Tagged Under: petcoke coal oil natural gas Energy