The Whitehaven Coal Ltd (ASX: WHC) share price is rallying yet again to another all-time high today.
At the time of writing, shares in the coal producer are up 5.19% to a record high of $8.92.
This means the share has risen 35% in the past month, defying the market sell-off that occurred on Wednesday.
What's causing Whitehaven Coal shares to steam ahead?
Investors are bidding up the Whitehaven share price as the price of coal continues to accelerate.
According to Trading Economics, Newcastle coal futures are fetching US$444 a tonne, up 1.1% from their previous close.
This is being exacerbated by the war in Ukraine as Europe and other countries race to get their hands on reliable sources of energy.
Several nations have been restarting operations at their respective coal plants ahead of the European winter.
In addition, India has boosted imports as coal inventories are at the lowest pre-summer levels since 2013.
To make matters worse, electricity demand is rising at the fastest pace in almost four decades in India.
Similarly, other ASX coal shares are also on the move today.
The New Hope Corporation Limited (ASX: NHC) share price is up 5.65% to $5.80, while TerraCom Ltd (ASX: TER) is travelling 6.86% higher to $1.09.
Coal prices are expected to remain elevated for the foreseeable future on the back of persistent supply disruptions.
A recent IEA report anticipates that global coal demand will return to its all-time high this year. This is being driven by higher natural gas prices, which have intensified gas-to-coal switching in many countries.
Whitehaven share price snapshot
As coal prices surge to near record highs, the Whitehaven share price has leapt by more than 240% in 2022.
In comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) sector has lifted by almost 40% over the same timeframe.
According to ANZ Share Investing, Macquarie raised its 12-month price target by 9% to $10 per share. Based on where Whitehaven Coal shares trade today, this implies an upside of around 12%.
Whitehaven commands a market capitalisation of approximately $8.11 billion.
