According to Bloomberg calculations, with the collapse of oil, coal, which would be the most polluting and cheapest fuel for power generation, is now the most expensive in the world. An example of this is Australia's Newcastle coal traded on ICE Futures Europe, which closed at $66.85 a tonne on Friday (20), the equivalent of $27.36 per barrel of oil. Brent futures ended at $26.98 a barrel.
Unfortunately, coal is the most polluting fossil fuel, as it emits about twice as much carbon dioxide as natural gas and 30% more than gasoline when burned. In the US and Europe, coal use has declined due to falling costs of natural gas and renewable energy, as well as the stabilisation of energy demand growth. However, consumption continues to rise in Asia, where it is the cheapest option for emerging markets that depend on the product.
For the world, it would be interesting for the price ranking to reflect more the drop in oil prices than the increased demand for coal, precisely to encourage the closure of plants and reduced investments in fuel.