Coal and oil are substitutes for each other; There is a positive correlation between them. Once the oil price rises, the coal price will also rise. Stimulated by the sharp rebound of crude oil futures this year, coal stocks also performed well.
Although coal and oil are the most important energy sources for human beings, their properties and causes are completely different. Let's start with coal. It can be said that coal comes from plants, which has been widely recognized. After death, trees will be corroded and then become part of the soil, which is the formation of coal.
Introduction of petroleum raw materials
The main raw materials for forming oil are some algae and plankton. When these creatures die, their bodies will be deposited to the bottom of the water. After these underwater sediments composed of corpses continue to be covered, they will undergo chemical changes due to the increase of temperature and pressure, thus forming oil and natural gas that we are familiar with.
The formation of oil is similar to that of coal, especially at high temperature and pressure. The difference is that the formation of coal requires specific conditions.