Here's The Latest Group Of Stocks To Benefit From Soaring Energy Prices

• Alliance Resource Partners broke out above a 27.83 buy point on March 19, while Core Natural Resources cleared 103.50 the same day; Peabody Energy and Glencore are approaching their respective buy points
• Japan is relaxing restrictions on coal-fired power plants for one year starting April, while Bangladesh, Philippines, Vietnam, and Thailand are increasing coal usage to substitute for LNG
• Europe's TTF gas futures benchmark remained 70% above pre-war levels as of February 27, while crude oil prices surged above $100 per barrel due to restricted Strait of Hormuz access

Summary: Coal Stocks Surge as Iran Conflict Disrupts Energy Markets

Key Market Developments

Coal stocks are emerging as beneficiaries of soaring energy prices driven by Middle East conflict. IBD's coal industry group jumped 15% this month, with the Newcastle coal benchmark index climbing nearly 17% to its highest level since November 2024.

Primary Catalyst

Iranian restrictions through the Strait of Hormuz have pushed crude oil above $100 per barrel and severely limited liquefied natural gas (LNG) supplies. Qatar, the world's third-largest LNG exporter, has shuttered production. Europe's TTF gas futures remained 70% above pre-Iran war levels (Feb. 27), despite Friday easing.

Companies and Trading Opportunities

Alliance Resource Partners (ARLP) broke out above a 27.83 buy point on March 19, currently in the buy zone to 29.22. Core Natural Resources (CNR) cleared 103.50 and is now extended. Peabody Energy (BTU) approaches a 39.95 buy point, while Glencore (GLNCY) nears 14.67 entry. Natural Resource Partners (NRP) sits 2% from a 128.60 buy point, and Warrior Met Coal (HCC) forms a cup base with 105.34 entry.

Market Implications

Asian countries heavily reliant on Middle East LNG are shifting to coal. Japan is relaxing restrictions on coal-fired plants for one year starting April, while Bangladesh, Philippines, Vietnam, and Thailand are increasing coal usage. LNG producers Cheniere (LNG), Venture Global (VG), and NextDecade (NEXT) should benefit long-term as Qatar becomes viewed as a riskier supplier due to potential future disruptions.

Portfolio manager Simon Lack notes that 10-20 year contracts make supply reliability crucial for LNG customers evaluating alternatives.