ASX coal shares are outperforming on Thursday amid surging energy commodity prices.
In fact, the S&P/ASX 200 Energy Index (ASX: XEJ) is one of the best-performing sectors today. It's recording a slump of just 0.8%.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dumped 1.23% on Thursday. The index is being weighed down by the tech sector's whopping 7.8% tumble.
Let's take a closer look at why most ASX coal shares are buoyed amid a sea of red today.
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Why are ASX coal shares outperforming?
Shares in two of the biggest ASX-listed coal companies are doing better than the broader market today.
Right now, the Yancoal Australia Ltd (ASX: YAL) share price is leading. It's recording a gain of 0.75% and trading at $5.38 apiece.
Meanwhile, shares in ASX 200 energy giant Whitehaven Coal Ltd (ASX: WHC) are flat after surging to 2.6% earlier today. At the time of writing, they're trading at $4.98.
The coal producers' shares are likely benefiting from the price of the energy commodity.
Newcastle coal futures are trading 1.99% higher at US$385 a tonne on Thursday afternoon. That's the highest it's been since it came off its all-time high of US$415 per tonne in March.
It comes as The Australian reports energy experts have noticed electricity generators are finding it harder to source coal in New South Wales lately.
That's likely a sign of surging demand and, potentially, an ongoing result of sanctions placed on Russia – a major coal producer – following its invasion of Ukraine.
The price of coal could also be weighing on Australian energy prices.
The average energy spot price in Queensland has more than doubled in 2022 – averaging $144 per megawatt hour for the year so far – compared to 2021's average of $61.81.
Victoria's average energy spot price is fairing best this year, having risen around 37% compared to its 2021 average.
