Will Cheap Oil Effect Coal Prices?

ASea · Post by **ASea** » Thu. Jan. 22, 2015 9:41 am

Anyone out there think less expensive home heating oil will effect coal prices?

michaelanthony · Post by **michaelanthony** » Thu. Jan. 22, 2015 10:17 am

ASea wrote:Anyone out there think less expensive home heating oil will effect coal prices?

I think the only room for this is the transportation cost. I think retailers may be able to hold prices stable and not increase the price. I haven't seen groceries come down at all and they are all transported by truck.

ASea · Post by **ASea** » Thu. Jan. 22, 2015 10:36 am

I am surprised most retailers ship by truck from PA. I would think rail would be cheaper. Maybe the demand just isn't there.

windyhill4.2 · Post by **windyhill4.2** » Thu. Jan. 22, 2015 10:49 am

Home heating oil is not used in trucks,nor in most big power equipment.The MAJOR users of diesel,trucking & equipment users usually have their fuel prices locked in for an extended period,fuel costs for them will not change quickly. So the trucks make a bit more money while fuel prices are down,they have operated with low profit margin for yrs.Coal prices have been are still low & stable as they have been for many yrs,why should the price of coal drop when oil takes a temporary tumble ? Will we expect coal to go lots higher when oil prices go higher ? Coal prices are stable & not as prone to ^v^v like the stock market.Let the coal companies make extra profit while the fuel prices are down,it will be better for us all in the long run.

ASea wrote:I am surprised most retailers ship by truck from PA. I would think rail would be cheaper. Maybe the demand just isn't there.

You have a rail near you ? got room for 100 ton car load x how many sizes a coal dealer stocks ? That is why trucks are used for the transportation of most products throughout the NE region. LOGISTICS, LOGISTICS .

ASea · Post by **ASea** » Thu. Jan. 22, 2015 11:18 am

I think inexpensive oil is here for awhile. The Saudis and OPEC want us dependent. They are flooding the market with cheap oil to put US companies out of business.

windyhill4.2 · Post by **windyhill4.2** » Thu. Jan. 22, 2015 11:47 am

ASea wrote:I think inexpensive oil is here for awhile. The Saudis and OPEC want us dependent. They are flooding the market with cheap oil to put US companies out of business.

And then when we all switch back to oil & the coal companies close,the price will go uP,UP. I will be burning coal regardless what oil drops to,as long as there is coal available.

freetown fred · Post by **freetown fred** » Thu. Jan. 22, 2015 1:21 pm

Indeed WH. History repeats itself. Do we ever learn????????????

coalfan · Post by **coalfan** » Thu. Jan. 22, 2015 1:25 pm

lehmans in kidron ,oh. 400.00 aa skid !!!2400 lbs .

lsayre · Post by **lsayre** » Thu. Jan. 22, 2015 3:01 pm

coalfan wrote:lehmans in kidron ,oh. 400.00 aa skid !!!2400 lbs .

Ouch! That's $333/ton. Coalway is not too far from them. I buy bulk, so I couldn't tell you the bagged price from Coalway, but on first guess I would imagine it to be lower that Lehman's Hardware.

windyhill4.2 · Post by **windyhill4.2** » Thu. Jan. 22, 2015 4:21 pm

I think we all need to look closely at what is going on in our world.I just read an article today that the state of Utah is proposing a BAN on wood burning . They are trying to control folks life's just like the communists countries do.I wonder how many folks left off burning oil when coal prices matched oil,yes coal is a bit more work,but as long as we have coal available we still have more choice as to what we use to heat with. For me it is not just the money& just so you don't think money is of no concern for us,we are currently trying to scrape enough money together to buy some coal as we are down to less than a weeks supply in the bin.We have a finished,unpaid job sitting here that should have been paid for in early DEC.,if paid for it would buy a few tons of coal.I said that to say that I want a choice of what I use for heating fuel so I will support coal as long as it is available,no matter how low oil drops,because it will rise again& you will pay more for it than you ever did.Follow oil history & learn.

coalfan · Post by **coalfan** » Thu. Jan. 22, 2015 5:03 pm

yes I think I heard awhle back somewhere on here they raised there prices and wow they did !!and I don't think they seel in bulk either !

samhill · Post by **samhill** » Thu. Jan. 22, 2015 6:36 pm

I think most OPEC & other Mid East countries are in fear of ISIS or whatever they call themselves now, they feel that there will be no reason for them to stop. They get much of their funding for murder from oil & don't have a pesky Gov. to run with all the graft & corruption to feed. The lower price of oil slows down the ability to buy arms & ammo, the more profit the more weapons.
As far as coal, food or any other trucked commodity it seems that the cost of doing business is only passed on on the up side & rarely if ever on the down.

Doby · Post by **Doby** » Thu. Jan. 22, 2015 8:23 pm

The cost of mining stays the same regardless of oil prices, you still have regulations to comply with,permits and of course labor, Windyhill hit it dead on look at the history, I will not cave in because its easier short term

Fran654 · Post by **Fran654** » Thu. Jan. 29, 2015 8:17 pm

as for me I will continue to burn coal, even with cheaper oil our house would not be as warm as it is with coal, less peoples fingers in the supply chain with coal than oil ,, plus I am in control of my supply , not waiting for the oil truck to deliver, yes coal is more work and time than oil but I enjoy being independent, we save for our coal just like we did oil ,when we need coal we go to the breaker, its a fun day trip for us, when the bin in the basement is low I fill it, and I take the ashes out,, if my wonderful wife is chilly she turns the thermostat up and its not such a worry about the cost,, you have to heat with something,,

2001Sierra · Post by **2001Sierra** » Thu. Jan. 29, 2015 9:08 pm

windyhill4.2 wrote:. I will be burning coal regardless what oil drops to,as long as there is coal available.

Me as well!