Peabody Energy (BTU) Near 52-Week High
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Shares of Peabody Energy Corp. (NYSE: BTU) appear to be testing a technical resistance level today, bringing its 52-week high into play. Peabody's stock price set a new 52-week high at $58.92 on October 26, and today's rally looks like it will attempt to match that level and possibly break-out.
The largest coal operation in the U.S., Peabody is leading other coal companies within the industry higher. The broader energy sector is performing extremely well today, better than any other sector, in fact, after OPEC ministers reported that they would not increase petroleum output in the near-term.
This mornings announcement comes in opposition to what was generally expected in the market. Now that the price of crude oil has backed away from the $100 level, far less pressure has been put on OPEC to raise output and many market players believed it would soon begin to pump more oil.
Coal companies are benefiting today as the announcement to hold output means demand will remain very strong for oil. In turn, this means the price of oil should stay high and the longer oil is expensive, the more consumers will look to alternate forms of energy, including coal.
The largest coal operation in the U.S., Peabody is leading other coal companies within the industry higher. The broader energy sector is performing extremely well today, better than any other sector, in fact, after OPEC ministers reported that they would not increase petroleum output in the near-term.
This mornings announcement comes in opposition to what was generally expected in the market. Now that the price of crude oil has backed away from the $100 level, far less pressure has been put on OPEC to raise output and many market players believed it would soon begin to pump more oil.
Coal companies are benefiting today as the announcement to hold output means demand will remain very strong for oil. In turn, this means the price of oil should stay high and the longer oil is expensive, the more consumers will look to alternate forms of energy, including coal.
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