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| Western Rail Powder River Basin (PRB) Coal Swap Futures |
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Coal is the principal fuel for generating electricity in the United States, accounting for approximately 55% of total electricity output. The United States has more high-quality coal than any other country, with nearly 30% of the world's bituminous and anthracite coal reserves. The United States is one of the largest coal producers in the world and U.S. exports make up a significant share of the world export market.
The prolific coal fields of the Powder River Basin (PRB) in Wyoming and Montana contain substantial reserves of low-sulfur, sub-bituminous coal. The coal is extracted by surface mining at relatively low cost. As transportation has become more competitive, PRB coal moves to customers further and further east, expanding its market area from the Southwest and Midwest. The low sulfur content makes it attractive to midwestern and eastern utilities who face increasingly stringent air emissions requirements.
The Western Rail PRB coal swap futures contract trades in units of 1,000 tons. It is available for trading nearly around the clock on the NYMEX ClearPortsm trading platform, and off-Exchange transactions can be submitted for clearing through the NYMEX ClearPortsm clearing website.
The coal futures contract can provide both the coal mining and electric power industries with a range of risk management strategies. |
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