HOUSTON, July 23 Norfolk Southern Corp
has not seen its crude shipments slow despite higher oil prices,
executives said on Tuesday.
U.S. crude oil prices have risen in recent weeks, narrowing
their discount to London's Brent to less than $2 a barrel from
$20 in February. That compressed spread cuts into profits of
refiners and others who ship crude by rail as the transportation
cost can range from $9 to $16 a barrel.
But Norfolk Southern Chief Executive Charles Moorman said
during the railroad's second-quarter earnings conference call
that the company's crude volumes have not yet been affected.
He said the spread narrowed "rather quickly and we will have
to see whether or not that type of spread compression