U.S., Freight Railroads: U.S. Railroads Push Against Oil Industry Demands for Storage in Rail Cars

By Reuters, The New York Times; April 9, 2020

NEW YORK — Railroads are clamping down on rising demand from oil companies to store crude in rail cars due to safety concerns, sources said, even as the number of places available to stockpile oil is rapidly dwindling.

Oil demand is expected to drop by roughly 30% this month worldwide due to the worsening coronavirus pandemic, and supplies are increasing even as Saudi Arabia and Russia hammer out an agreement to cut worldwide output. Storage is filling rapidly as refiners reduce processing and U.S. exports fall.

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