4 Reasons Coal ETFs May Burn Bright | ETF Trends

Right now, the coal market is in the thick of a supply glut that’s keeping prices on the low end. But few believe that this will be the case for long. Here are a few reasons to watch coal exchange traded funds in the coming months.

  • BlackRock‘s Dan Rice recently suggested that as the world grows we would consume more commodities and the prices for coal could rise from its current $60-$65 per ton to $85 per ton, along with a 300% spike in aggregate share prices of many coal producers, writes Jeff Saut for Minyanville.
  • Gregory Boyce, CEO of Peabody Energy’s (NYSE: BTU), also observed that coal is the world’s fastest-growing fuel on demand. This greater demand should coincide with the growing middle class of emerging markets and their demand for more electricity.
  • La Nina is here, which means that it may well be a winter of extreme temperatures, says AOL News. This may mean unseasonably cold or hot weather around the country – both opportunities for people to fire up the heaters and the air conditioning, stoking coal demand.

For more information on coal, visit our coal category.

  • Market Vectors Coal ETF (NYSEArca: KOL)

  • PowerShares Global Coal Portfolio (NASDAQ: PKOL)

Coal ETFs, Energy

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.