Back in Black

[cottonpicken]

Two weeks ago, rail freight transportation company CSX's CEO Michael Ward stated 'unequivocally' that as far as the movement of crude by rail he has "not seen any changes," suggesting everything's fine down to $30-35 oil and "expected no impact on crude shipments." It appears he may have been somewhat careful with the truth as Reuters reports, while overall oil-train traffic remains near record highs, the shadowy industry that deals in the specialized 87-tonne crude carriers has seen monthly lease rates plunge to $1,300 late last month from a high of $2,450 about year earlier with the rates at their lowest in about three years. Even worse, railcar construction has surged amid the mal-investment boom exaggerating the over-supply, with one trader noting brokers were offering cars at spot rates of as little as $500 a month compared with $4,000 a year ago.


https://www.youtube.com/watch?v=pAgnJDJN4VA

[bgmb]

the rail workers here are saying oil trais are way way down in the last couple months, like %30 of what they were a year a go.

[TASFarms]

Oil producers don't like rail. Too much paper work and the fact that they seem to lose the odd rail car load of oil.