Crude-by-rail volumes to the East Coast drop as imports rise (7/7/2016)

Movements of crude by rail (CBR) within the United States, including intra-Petroleum Administration for Defense Districts (PADD) movements, averaged 442,000 barrels per day (b/d) in the first four months of 2016, down 45% from the same period last year. A reduction in CBR movements from PADD 2 (Midwest) to PADD 1 (East Coast) accounts for about one-half of the decline (Figure 1). Since September 2015, CBR volumes have generally decreased as crude oil price spreads have narrowed (making imported crudes relatively cheaper compared with railed supplies), pipelines have come online, and domestic inland production has declined. ... More »