Weekly Review: Global Oil and Coal Prices Drop in Tandem!
Weekly Review: Global Oil and Coal Prices Drop in Tandem!
Oil Last Week: From Panic Surge to Sharp Correction, Market Still Shadowed by Hormuz
Global oil prices closed the week with extreme volatility. According to Refinitiv data, the nearest Brent contract closed at US$95.20 per barrel on 10 April 2026, down 13.28% from the 31 March close at US$109.77 per barrel. Meanwhile, West Texas Intermediate (WTI) stood at US$96.57 per barrel, correcting 14.09% from the 6 April position at US$112.41 per barrel. In a matter of days, the market shifted from a supply panic phase to awaiting a new direction.
The start of the week was marked by a price surge when Brent held around US$109 and WTI above US$112 on 6-7 April. At that time, the market was still assessing the impact of disrupted shipping flows in the Strait of Hormuz, a vital route that typically carries about 20% of global oil and LNG supplies. Concerns grew after attacks on energy facilities in the Gulf region heightened the risk of distribution disruptions.
However, the direction reversed sharply thereafter. On 8 April, Brent fell to US$94.75 and WTI to US$94.41. This correction occurred after hopes emerged for a two-week ceasefire between the United States and Iran, sparking expectations of reopening energy supply routes. The market, which had previously built up a risk premium, suddenly released some hedging positions.
Nevertheless, the price decline rally did not proceed smoothly. On 9-10 April, prices strengthened again to the US$95-97 range after investors deemed the ceasefire fragile. Tanker traffic has not yet returned to normal, shipping insurance premiums remain high, and ship operators are awaiting security assurances before fully transiting Hormuz. In other words, the paper of peace has not automatically returned barrels to the market.
Another sentiment came from news that Washington may extend waivers for purchasing some Russian oil. The market interprets this policy as an effort to increase global supply flexibility so that fuel price surges do not further pressure US consumers. If extended, Russian supplies could potentially serve as a temporary buffer while Middle East distribution has not fully recovered.
Coal Last Week: Plenty of Positive News, Prices Still Dragged Down
Global coal prices continued to move lower throughout the last week despite being flooded with sentiments that should support the market. According to Refinitiv data, the Newcastle Futures contract closed at US$132.4 per tonne on 9 April 2026 trading, weakening 9.1% from the 31 March position at US$145.6 per tonne. Even compared to the brief peak on 30 March at US$148.6 per tonne, the correction is nearing 11%.
This week’s movement was split into two phases. In early April, prices still held around US$139 per tonne, supported by the global energy price surge due to Middle East conflicts. Supply disruptions in LNG and LPG from the Gulf region temporarily triggered a shift in fuel consumption from gas to coal, especially in major importing countries like Japan and South Korea with flexible power plant facilities.
However, that push faded quickly. On 7 April, prices briefly touched US$141 per tonne, then collapsed to US$132.45 on 8 April and held at US$132.4 the next day. In two days, the market lost about 6.1%. This correction occurred alongside falling oil and gas prices, reducing the urgency to switch to coal. As substitute energy cooled, the appeal of black gold diminished.
From the United States, the Donald Trump administration proposed major easing of coal ash waste regulations. The new rules could exempt more than 100 disposal sites from EPA cleanup obligations and relax groundwater monitoring requirements. This policy provides more breathing room for electric utilities and mining industries but failed to act as a short-term price catalyst.
From Europe, Italy has delayed the permanent closure of four coal-fired power plants until 2038. This step was taken due to the high cost of gas-based electricity following the Middle East war. The decision illustrates an old reality: when energy crises arise, coal is often called back to the main stage. Nevertheless, the global market views the impact on physical demand as still limited.
China also provided a supportive signal. Thermal coal prices at the mine mouth in several regions rose slightly, driven by restocking and repurchases by end-users. Additionally, China’s mining giants are increasing coal investments in the chemicals sector, such as olefins and plastics, taking advantage of expensive oil-based raw materials. In essence, coal is seeking new pathways to life beyond power generation.
Despite the buzz from sentiments in the US, Italy, and China, the market chose to focus on the global energy price slowdown and adequate supplies. As long as China has not entered a phase of major demand and gas prices remain flat, coal is likely to move heavily in the low range. Many good news stories arrived as guests, but none were strong enough to lift the host.