The Whitehaven Coal Ltd (ASX: WHC) share price is surging higher today despite no news coming from the company.
However, the S&P/ASX 200 Energy Index (ASX: XEJ) is leading the market on Friday. Additionally, the price of coal is likely on the minds of many after the release of Queensland's mid-year budget update.
At the time of writing, the Whitehaven share price is $2.50, 4.17% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.38% right now.
Let's take a closer look at what might be spurring market sentiment for the coal miner.
Whitehaven share price soars on Friday
The Whitehaven share price is leading its home sector today, but the share prices of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Beach Energy Ltd (ASX: BPT), and Ampol Ltd (ASX: ALD) aren't far behind it.
They're gaining 2.5%, 2.4%, and 2% respectively on Friday afternoon.
Additionally, the Whitehaven share price's gains come after yesterday's release of Queensland's mid-year budget update.
While Whitehaven doesn't operate any coal mines in Queensland, the budget update has put coal prices in the spotlight in a good way.
Since the state's budget was tabled in June, the price of both thermal and metallurgical coal have hit historic highs.
On 15 June, the spot price for a tonne of premium hard coking coal was US$173.25. By 22 September, that same tonne was going for US$408. Though, it had dropped as low as US$315.50 in early December.
It was a similar story for thermal coal, with its spot price increasing from US$74.50 per tonne on 15 June to US$179.05 per tonne on 19 October. Earlier this month, it had dropped once more to US$97.50 per tonne.
The state's Treasurer, Cameron Dick commented:
Increases in the price of hard coking coal, combined with the strong property sector have delivered increased revenues from coal royalties and transfer duties.
The state's taxation and royalties are, therefore, expected to be $8.1 billion higher than previously predicted over the next four years.
Royalties from coal have allowed the state's government to put $2.5 billion towards future priority initiatives. Another $2.1 billion will go towards Queensland's COVID-19 response.
Right now, the Whitehaven share price is 50% higher than it was at the start of 2021. It has also gained 1.8% over the last 30 days.
