Eastern Railroad Discussion > Good news for motorists, but

Bad news for crude by rail, says the Wall Street Journal. The Iran bailout has created a bumper car of price changes. The U.S. is importing oil from Albania, Angola, Azerbaijan, etc as Iran under prices their oil in other markets. For now, U.S. can't import Iran's oil.

Rail is an expensive way to bring shale oil from North Dakota to Delaware. $13 a barrel compared to $4 from Angola. With the export ban of crude from the U.S. now lifted, the world and U.S. crude benchmarks are a dollar or two apart.

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May be expensive but there's two oil trains sitting on the Delaware City loops at the moment.

John

Another poster mentioned that Del City trains have gone from two to three per day to about one per day. Sometimes two.  Ship deliveries have gone from none to about one per week.

It's likely there are contractual matters that have to be addressed like take or pay contracts, guarantees to NS, etc.

The price of gas is still going up though.