OilPrice · March 30, 2026 (11h ago) · 1 min read

Coal Is Back — and Japan Is Driving the Rally

Analysis

OilCyprus Editorial

The article suggests Japan's energy security concerns, exacerbated by geopolitical tensions in the Strait of Hormuz, are driving a resurgence in coal demand. This shift is due to Japan's heavy reliance on imported energy and the vulnerability of its oil supply chains.

Key Facts

Japan imports roughly 90% of its crude oil.
The closure of the Strait of Hormuz is a significant threat to Japan's energy security.
Japan is potentially increasing its reliance on coal as an alternative energy source.

Market Impact

Increased coal demand from a major economy like Japan could put upward pressure on global coal prices, potentially impacting the economics of natural gas as a competing fuel source. This could also influence investment decisions in coal-fired power plants and related infrastructure, while potentially hindering the transition to cleaner energy sources.

Why This Matters for Cyprus

This matters because a major energy importer's shift towards coal impacts global energy markets and the ongoing debate about the energy transition.

Read on OilPrice