U.S. oil prices traded at a discount to London’s Brent of more than $23 a barrel in February, but that discount has narrowed to less than $3 a barrel. That cuts profits from crude shipments via rail or barge, more expensive options than pipelines.
Kirby executives told analysts that they, like other players in moving growing U.S. crude production, expect that discount to widen. “At this point, there is no impact on volumes,” Chief Executive Joe Pyne said during the company’s second-quarter earnings call.
(c) 2013 Thomson Reuters