The Whitehaven Coal Ltd (ASX: WHC) share price accelerated in July.
For the month, shares in the coal miner jumped 28% to finish at $6.21 on 29 July.
This means the company's shares outperformed the S&P/ASX 200 Energy (ASX: XEJ) sector, which rose 2.1% over the same timeframe.
And looking at the start of the new month, Whitehaven shares are continuing their ascent.
At close of trade on Monday, the coal producers' shares are up 2.09% to $6.34.
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What's fuelling Whitehaven shares lately?
Despite the gloomy outlook on the global economy, coal prices rebounded strongly over the month following significant tailwinds.
An International Energy Agency (IEA) report released last week stated that global coal demand is looking to return to its all-time high in 2022.
This comes on the back of news that China could reopen its ports to ships carrying Australian coal. The two-year ban follows a reset in political relations between the two countries since the Morrison government left office in May.
Subsequently, the price of coal has shot up to US$407 per tonne, a 5.6% increase since this time last month.
In its June quarterly report, Whitehaven achieved a record average coal price of AU$514 per tonne for the quarter and AU$325/t for FY22.
With higher coal prices translating to higher earnings, investors took notice of management forecasting its strongest ever full-year result.
As such, the company expects to report FY22 earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately $3 billion, subject to a final audit.
The positive release led Whitehaven shares to lift 5.17% on the day, and another 8.79% over the next two days.
According to ANZ Share Investing, Citi remains confident on Whitehaven shares, raising its 12-month price target by 60% to $7.85. This represents an upside of around 24% based on the current share price.
Its analysts believe the miner's shares are a buy as it is well-placed to benefit from strong coal prices.
Whitehaven share price summary
Due to the favourable commodity pricing, the Whitehaven share price has surged by more than 140% in 2022.
Although, when looking at the past 12 months, Whitehaven shares are up by 185%.
Whitehaven has a price-to-earnings (P/E) ratio of 55.61, and a market capitalisation of $5.93 billion.
