Price of Coal Surges

Summary


NEW YORK -- After several years of stagnation, the price of coal mined in Wyoming's Powder River Basin has surged and may be primed for further increases mirroring the recent rise of other energy commodities.

Since the beginning of the year, Basin coal for next-quarter delivery has risen 19 percent, and coal for 2006 delivery has risen 23 percent. Some market participants think the fuel is poised to get even more expensive as power plant owners in the East increasingly look west for their fuel, taking advantage of improved rail transportation from the Basin and the coal's low sulfur content.

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Extract


Price of Coal Surges

The demand from utilities like Allegheny Energy Inc. of Greensburg, Pa., should benefit miners like St. Loui...

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