China Pushes Coal Miners to Lift Supply as Prices Climb

China’s government has called on local coal miners to maintain a stable production rate after a jump in spot prices for thermal coal earlier this month. Thermal coal prices on the spot market recently climbed to the highest in three years, Bloomberg said in a report today, putting pressure on the government in Beijing to act. China has been reducing the share of coal in its energy mix, but the fuel remains vital, with a share of 49.7% in power generation over the first half of the year. This is the first time coal has dipped below 50% of…

Refining & Products Context

Downstream margins — or crack spreads — have experienced considerable volatility as refinery operators navigate feedstock cost fluctuations, product demand seasonality, and evolving fuel specifications. Gasoline and distillate margins serve as key profitability levers for integrated refiners.

Refinery utilization rates, particularly in the U.S. Gulf Coast and Northwest European hubs, directly influence product availability and pricing. Unplanned outages, scheduled turnarounds, and weather-related disruptions are recurring factors that tighten regional product supply.

What to Watch

Key metrics to watch include refinery utilization rates, weekly distillate inventory builds or draws, and crack spread movements, which serve as real-time indicators of refining profitability across major processing hubs.