Wednesday, May 12, 2010

Duke Energy (NYSE:DUK) Says Coal Prices will Rise

Duke Energy (NYSE:DUK) said the price of coal will rise over the next 12 months, citing the accident involving Massey Energy’s (NYSE:MEE) Upper Big Branch coal mine as one of the major factors in the increase in coal prices since the middle of April of 10 percent.

Actions from the Environmental Protection Agency are also the culprit in increasing coal prices, as they are demanding stricter regulations for mine water permits, and have proposed revoking a mining permit of Arch Coal (NYSE:ACI) as well, pushing prices higher.

It seems the government may be doing some of this deliberately in order to push its own energy agenda, which will cost far higher than the price of coal and other energy, but can't compete unless existing energy resources move up in price.

Consequently coal prices are expected to continue rising into 2012.

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