Record Coal Demand Ahead as Gas Prices Soar and El Nino Bites

Global coal demand is poised to hit a record high this year due to rising natural gas prices and a strong El Nino weather pattern, according to the International Energy Agency (IEA). The IEA notes that higher gas prices have driven up the cost of air conditioning, leading to increased consumption of coal. This development deals a blow to efforts to reduce greenhouse gas emissions.

The uncertainty surrounding liquefied natural gas flows through the Strait of Hormuz is also expected to contribute to rising coal demand in the coming year, the IEA warned. The agency's report highlights the challenges facing efforts to transition away from fossil fuels and towards cleaner energy sources.