S&P/ASX 200 Index (ASX: XJO) coal shares are out ahead of the pack on Tuesday, gaining as much as 6%.
That puts them in the leading spot on the S&P/ASX 200 Energy Index (ASX: XEJ), which is, in turn, among the ASX 200's best-performing sectors.
Here are how some of the biggest ASX 200 coal stocks are performing right now:
- New Hope Corporation Limited (ASX: NHC) shares are surging 6.02% to $5.725
- The share price of Whitehaven Coal Ltd (ASX: WHC) is up 6.01% at $8.385
- That of Coronado Global Resources Inc (ASX: CRN) is gaining 3.36% to $1.54
Meanwhile, the share price of market favourite Yancoal Australia Ltd (ASX: YAL) – which isn't included in the ASX 200 – has lifted 1.3% to $5.47.
For comparison, both the ASX 200 and the All Ordinaries Index (ASX: XAO) are rising 0.37% right now.
So, what's going so right for ASX coal favourites on Tuesday? Let's take a look.
What's boosting ASX 200 coal shares?
ASX 200 coal shares – and non-ASX 200 coal favourites – are outperforming on Tuesday.
Their strong performance comes as the energy sector lifts 1.55%, coming in second only to the S&P/ASX 200 Materials Index (ASX: XMJ)'s 2.25% gain.
That's despite oil prices falling around 2.5% overnight. The Brent crude oil price slipped 2.4% to US$84.06 a barrel while most of Australia slept. At the same time, the US Nymex crude oil price fell 2.6% to US$76.71 a barrel.
It's worth noting, however, that shares in New Hope, Whitehaven, Coronado, and Yancoal fell 15%, 14%, 12%, and 12% respectively on Monday.
Their recent gains and falls come as demand for the commodity is seemingly supported by concerns of a European energy crisis.
The continent is facing a shortage of gas and coal after Russian energy commodities were withdrawn from the market following the nation's invasion of Ukraine earlier this year, Reuters reports.
That has reportedly led many European nations to double down on coal to keep the lights on as the Northern Hemisphere's winter approaches.
Such demand has likely driven prices higher – and that's good news for ASX 200 coal shares.
New Hope, for example, recently posted a whopping 1,138.8% year-on-year increase in after-tax profits for financial year 2022.
The company also noted its realised average price came to $493.52 a tonne in the final quarter. For comparison, it posted a realised average price of $281.84 for financial year 2021.
