Alliance Resource Partners Soared Today After Touching 20-Year Lows

Units of Alliance Resource Partners LP (NASDAQ: ARLP) rose as much as 20.9% today as crude oil prices rallied nearly 20% on hopes that Saudi Arabia and Russia could significantly curtail production. The partnership is a leading producer of coal in the United States, and coal prices are heavily influenced by crude oil prices.

Saudi Arabia and Russia have been engaged in a war over production volumes and pricing since early March. The who-blinks-first dispute has kept the taps open for two of the world's largest oil producers just as the 2020 coronavirus pandemic saps global demand for transportation fuels and refined products. A resolution is inevitable given the current landscape, but even an end to the pricing war won't be enough to lift energy prices back to levels from the beginning of the year.

As of 3:02 p.m. EDT, the former dividend stock had settled to a 11.5% gain.

Source Fool.com