Surge in Natural Gas Prices Sets The Stage for Coal Comeback

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U.S. natural gas prices have surged to a three-year high, making coal a cheaper alternative for utilities, which are expected to increase coal-fired generator usage this winter.

Market Impact

Market impact analysis based on bearish sentiment with 80% confidence.

Sentiment
Bearish
AI Confidence
80%

Article Context

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As U.S. natural gas prices jumped to a three-year high, coal has become a cheaper power-generating fuel for utilities, which are set to run coal-fired generators harder this winter. U.S. benchmark natural gas prices at Henry Hub have jumped from $4.23 per million British thermal units (MMBtu) at the start of November to above $5 per MMBtu by early December. Early on Friday, the front-month futures price was $5.084 per MMBtu. That’s the highest price in three years, as a polar vortex with freezing temperatures and snowstorms gripped most…

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Original article published by OilPrice.com on December 8, 2025.
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