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Capital Economics argues that the weakness in natural gas and coal prices reflects long-standing issues rather than the latest US-China trade tensions. Both commodities are down roughly 30-50% year to date.
The firm expects low prices through 2020-21 because of a global surge in gas output and structural decline in coal demand.
Persistent oversupply of gas keeps energy input costs low for feed producers and dries up coal-to-gas switching demand. The outlook points to a prolonged bearish price environment.
capitaleconomics.comSamuel Burman, Oliver Allen, Caroline BainAug 2, 2019Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
