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Natural gas prices are witnessing record rallies recently, prompting the utilities to switch to coal. The rising demand amid the prolonged supply cuts has led the U.S. coal prices to hit a two-year high. Coal from the central Appalachia region rose to $73.25 a ton last week, up 35% from the start of the year and the highest since May 2019.
The surging natural gas prices are expected to keep increasing the demand for coal. Thus, fundamentally strong coal stocks Alliance Resource Partners, L.P. (ARLP), CONSOL Energy Inc (NYSE:CNX). (CEIX), and Natural Resource Partners L.P. (NRP) should benefit from these industry tailwinds.
