Jump to content


Photo

Railroads Caught by Speed of Crude-Oil Collapse


  • Please log in to reply
No replies to this topic

#1 CNJRoss

CNJRoss

    Administrator

  • Admin
  • PipPip
  • 43390 posts
  • Gender:Male
  • Location:Fairfax, VA

Posted 28 March 2015 - 03:02 PM

Bloomberg Business, 3/26:
 

North American Railroads Caught by Speed of Crude-Oil Collapse

 

(Bloomberg) -- The slowdown that North American railroad companies had been bracing for in crude oil shipments has turned into a rout, with volumes falling faster than executives had predicted.

 

With energy companies scaling back drilling after prices for the commodity fell about 50 percent since July, industry executives and analysts anticipated that demand for hauling crude and extraction materials such as frac sand and pipes would slow after a four-year surge. They didn’t expect it to slow this much this fast.

 

“The impact is occurring more quickly than the rails originally projected to investors,” said Matt Troy, an analyst with Nomura Securities International Inc. in New York. “The consensus view was that very high double-digit growth would moderate to low double digits, and as we have seen in recent weeks we’ve broken that floor and in some cases gone negative.”

 

Continue here.






0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users