Bloomberg: Companies looking to tank cars for excess crude oil storage

RELATED TOPICS: COMMODITIES | SHIPPERS | CRUDE OIL
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Bloomberg is reporting that oil companies may be looking for tank cars to store an excess of crude oil in the U.S. 

Companies are running out of convenient places to store crude oil while prices hover just over $22 a barrel in national markets and domestic supplies remain high amid a demand slowdown during the coronavirus pandemic.

Bloomberg reports that the situation is acute in Alberta, where local crude oil prices are at less than $10 a barrel.

The last time tank cars were used for storage in this way was back in 2016. The news organization says there are safety concerns and specific Federal Railroad Administration rules to follow. Bloomberg cites anonymous sources saying companies are asking to lease tank cars for 3 months to a year.

More information is available online
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