The coal price strengthened at the end of trading on Thursday (27/07) - or Friday morning Indonesian time - supported by the rebound in crude oil prices. At the end of trade on Thursday, coal prices (January 2018 contracts, the most-active contract on the Rotterdam Commodities Exchange) had risen 0.21 percent to USD $73.30 per metric ton.
In the previous trading session, on Wednesday (26/07), the price of coal had only edged up modestly by 0.03 percent to USD $73.15 per metric ton.
Meanwhile, crude oil prices closed above the USD $49 per barrel level for the first time since May 2017 amid optimism that OPEC output cuts will ease the oversupply on markets. West Texas Intermediate (WTI) crude for September delivery rose 0.6 percent to USD $49.04 a barrel on the New York Mercantile Exchange, while Brent oil for September delivery rose 0.52 points to USD $51.49 per barrel on the London-based ICE Futures Europe exchange.
Oil prices are supported by reports that Kuwait joins the United Arab Emirates by promising a reduction in oil production after Saudi Arabia asked other OPEC members to cut their crude output more.
Meanwhile, the Energy Information Administration (EIA) reported that US crude inventories fell 7.21 million barrels last week to the lowest level since early January 2017. Hence, the market is currently digesting a very strong decline in terms of inventories, while Saudi Arabia is showing its commitment to support oil prices in terms of export reductions.
Source: Indonesia Investment