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By Bloomberg

European thermal coal plunged to the lowest in almost eight years as declining oil prices cut operating costs and lower river levels restricted shipments to inland power stations.

Coal for delivery to the Amsterdam-Rotterdam-Antwerp area next year fell as much as 1.6 percent to $54.90 a metric ton, the lowest in broker data compiled by Bloomberg that goes back to September 2007. It’s dropped more than 16 percent this year as imports to the U.K. declined to their lowest in five years.

Falling global prices have driven mining companies from Alpha Natural Resources Inc. to Walter Energy Inc. to declare bankruptcy in the U.S., while Glencore Plc, Australia’s largest exporter, has shut mines amid shrinking demand from China, the world’s largest consumer. Governments are boosting support for renewable energy and tightening pollution rules for coal-fired power plants across the European Union.

“Brent crude oil below $50 a barrel is bearish for Europe, because it’s a cost for miners,” Diana Bacila, an analyst in Oslo at Nena AS, said by phone today. “Drier weather has impacted river levels in continental Europe, and this is negative for coal prices as it leaves high stocks at ports.”

Front-month Brent declined 0.3 percent to $49.35 a barrel on London’s ICE Futures Europe. The contract dropped Thursday to its lowest in more than six months. Fuel to operate equipment can make up as much as 40 percent of miners’ costs, according to Nena.

Imports of coal into the U.K. in the five months through May dropped 25 percent to 15 million tons from 21 million tons in the same period a year earlier, according to data from the U.K. Department of Energy. German purchases of the fuel dropped 2.3 percent over the same period, government data show.

Global seaborne coal supply is forecast to increase 1 percent to 1.069 billion tons in 2015, while demand for cargoes will drop 3 percent to 1.059 billion tons, according to Deutsche Bank. The 10 million-ton surplus compares with a 34 million-ton shortfall in 2014, according to a Deutsche Bank report.