Coal Demand Set to Rise Amid Middle East Conflict
The International Energy Agency (IEA) has released its Mid-Year Update on the coal sector, revealing that global coal demand is set to increase this year due to the conflict in the Middle East.
Energy market disruptions caused by the conflict have led to sharp rises in natural gas prices, prompting countries to turn to alternative sources. As a result, higher electricity generation from coal has been observed in countries with gas-fired power fleets and spare coal capacity.
China's increased consumption of coal for producing chemical products due to high oil prices, as well as expectations for a strong El Niño weather pattern this year supporting coal demand in Asia, have also contributed to the rise in global coal demand. The IEA forecasts that global coal demand will increase by 1.2% in 2026, reaching a record 8.94 billion tonnes.