BAKU, Azerbaijan, October 22. US coal inventories held by the electric power sector are anticipated to reach nearly 150 million short tons (MMst) in December 2023, marking a significant 66-percent increase year-on-year, the US Energy Information Administration Agency (EIA) says, Trend reports.
According to the agency's projections, this upsurge in coal inventories for the current year is attributed to a delayed response in production as coal producers meet existing supply contracts, despite a decrease in coal-fired generation.
Even though the EIA predicts a slight rise in natural gas prices in the coming months, the expectation is that coal inventories will continue to grow until the spring of 2024.
They are projected to reach their peak at around 170 MMst in May, coinciding with preparations within the electric power industry for the higher power demand during the summer.
Subsequently, the EIA anticipates that coal stocks will decline from the May 2024 levels, falling back below 150 MMst later in the year, as coal consumption follows its typical seasonal decline during the fall.