Prospects for global energy markets have been reshaped by two recent pieces of news, one of which helps to explain the other.
The first is a report from the International Monetary Fund (IMF) released on Monday, estimating that global fossil fuel use is subsidised to the tune of US$5.3 trillion a year (6.5% of global GDP).
The second is the continuing decline in coal production and use in China, which began in 2014. The latest reports show April 2015 coal production in China was down 7.4% on April 2014.
To understand the link between the two, it is necessary to look at the way the IMF obtained its estimate.
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