The Whitehaven Coal Ltd (ASX: WHC) share price is pushing higher alongside a number of other ASX energy stocks today.
This comes amid rising commodity prices — a likely reaction to Russia's invasion of Ukraine and the economic sanctions being imposed on Russia by other countries.
At the time of writing, the Whitehaven Coal share price is up 5.33% at $3.56. To compare, the broader S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.1%.
So what's got investors talking?
What's going on with the Whitehaven Coal share price?
The last time we heard anything official from the coal mining giant was when it released its half-year results on 17 February. In it, the company reported record-breaking profits and earnings, as well as lowered debt.
Despite dropping 6% on the day of the news, the Whitehaven Coal share price increased by 20% overall in February.
Whitehaven shares have likely been boosted today by global concerns of an impending energy crunch as a result of the Russian invasion.
This is boosting commodity prices, with the price of coal up by 9.6% overnight to US$301 per tonne, and up 36% over the past month.
The energy sector is leading the market today, with the S&P/ASX 200 Energy Index (ASX: XEJ) up 4.4%, making it the best performing sector on the ASX. Second is the S&P/ASX 200 Materials Index (ASX: XMJ), which is up 2.5%.
The world is waiting to see the full impact of the economic sanctions placed on Russia. Global energy supply is likely to be disrupted and energy prices are already rising. This is because Russia is a major global energy supplier. In fact, Russia is the largest exporter of oil, natural gas, and hard coal to the European Union.
Sanctions on Russia change the global energy market
Several countries have imposed a number of sanctions on Russia, including the United Kingdom and the United States. The sanctions have limited the activities of a handful of Russian banks and individuals. This includes Russian President Vladimir Putin and other members of the Russian Government.
The US has cut off a number of Russian energy and transport companies from its credit markets, says The Guardian.
The Washington Post reports that the US and other countries plan to dip into an emergency oil reserve of 60 million barrels to try and ease recent petrol price spikes.
The sanctions on Russia could divert global energy demand to other exporters. Last week, Blue Line Futures' chief market strategist, Phil Streible, said a number of commodities could rebound as a result.
Whitehaven Coal share price snapshot
Over the past 12 months, the Whitehaven Coal share price has increased by 134%. The shares traded at a high of $3.64 in October as the price of Australian thermal coal hit a new record.
The company has a market capitalisation of $3.49 billion.
