California’s refiners received a record amount of crude by rail in the second quarter, more than tripling the volume from a year earlier, as shipments from Colorado, North Dakota and other states grew.
California brought in 748,802 barrels of oil by rail from April through June, up from 215,694 a year earlier and from 638,112 in the first quarter, data posted on the state Energy Commission website showed. Crude from North Dakota accounted for 317,122 barrels, or 42 percent, of the oil. The state also received 225,201 barrels from Colorado and 76,648 from Canada.
The increasing rail shipments are helping refiners in California, the world’s ninth-largest economy, replace costlier supplies from within the state, Alaska and abroad.
That access will help “drive prices lower across the entire slate,” Paul Y. Cheng, an analyst at Barclays Plc (BARC)’s investment-banking unit in New York, said in an e-mailed note Sept. 3. “A combination of several factors could drive a $3-$4/bl reduction across the entire crude slate, over time.”
Petroleum companies report oil receipts by rail to California’s energy commission on a quarterly basis, with June being the latest month available.
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