India’s energy landscape saw contrasting movements, with domestic coal production rising while global crude oil prices dropped following geopolitical developments.
According to industry data, India’s coal output in December increased by 3.6% year-on-year, reaching 101.45 million tonnes and surpassing the monthly target of 87.06 million tonnes set by authorities.
The growth came despite a slight 0.64% decline in total coal production over the first nine months of the fiscal year, partly due to earlier monsoon-related disruptions. Coal remains a cornerstone of India’s power generation mix, contributing around 60% of total electricity output, and coal and gas together accounted for about 74% of energy generation amid high seasonal demand in December.
Interestingly, coal supplies to the power generation industry declined by 7% in December. India recorded a seasonal high in power consumption in December, driven by winter, which is typically when electricity consumption is higher.
On the other hand, the global oil prices fell by 3% following comments by U.S. President Trump, suggesting a reduction in the likelihood of imminent military action involving Iran, a key oil-producing nation.
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Trump noted that the killings of demonstrators in Iran had eased, reducing fears of a broader conflict that could disrupt oil supply chains. This helped reduce the geopolitical “risk premium” in oil markets, with Brent and West Texas Intermediate crude benchmarks both slipping roughly 3%.
Brent Crude was trading 3.4% down, 64 U.S. dollars and 26 cents per barrel. At the same time, West Texas Intermediate (WTI) Crude was also trading 3.3% down at 59 U.S. dollars and 90 cents per barrel, according to the latest reports.
