Coal Prices Hit 1.5-Year High, Thanks to Trump
Coal prices have skyrocketed for three consecutive days, supported by the rise in oil prices and policies from US President Donald Trump.
According to Refinitiv, coal prices closed at US$148.6 per tonne on Monday (30/3/2026) trading, surging 3.3%. This closing price is the highest since October 2024, or the last 1.5 years.
This increase extends the coal rally, strengthening by 8% over the past three days.
Coal prices continue to climb in tandem with rising oil prices. Coal serves as a substitute for oil, so their prices influence each other.
West Texas Intermediate oil prices closed up 3.25% at US$102.88 per barrel yesterday’s trading. This is the highest close since 19 July 2022.
Meanwhile, Brent crude rose slightly by 0.19% to US$112.78 per barrel and is on track for the largest monthly gain in history, with a surge of around 55%.
Coal prices are also rising, bolstered by Trump’s policies.
The United States Department of Energy on Monday extended an emergency order that maintains the operation of the ageing Craig coal-fired power plant, bypassing its original retirement schedule.
Energy Secretary Chris Wright first issued the emergency order on 30 December, or one day before the Craig Station Unit 1 in Moffat County was scheduled to close under Section 202(c) of the Federal Power Act.
This rule allows the Department of Energy to keep the plant operational during crises, such as war or energy shortages.
The order forced the plant to continue operating until 30 March, citing an “energy emergency” in the Western region due to electricity supply shortages and generation facilities.
Although such orders last 90 days, the Department of Energy has the authority to extend them indefinitely until the crisis is declared over.
The latest extension keeps the Craig plant operational at least until 28 June. Wright stated that accelerating the retirement of the power plant could cause electricity disruptions for households and businesses, as well as risks to public health and safety.
In addition to Colorado, the Donald Trump administration has also used energy emergency pretexts to halt the closure of coal plants in Michigan, Washington, and Indiana, as well as an oil plant in Pennsylvania.
Earlier this month, Colorado Attorney General Phil Weiser, along with a coalition of environmental groups, sued the Department of Energy, accusing the agency of abusing its authority.
The joint owners of the plant, including Tri-State Generation and Transmission Association and Platte River Power Authority, also oppose the decision.
The over-40-year-old plant even halted operations in December 2025 due to valve damage before being ordered to remain active. Its owners have also requested that the emergency order be revoked, as all operational costs will be borne by customers.
Tri-State stated it is still reviewing the order and considering legal action while complying with applicable regulations.
The company also plans to close two other coal units at Craig Station in 2028.