US Oil Imports Increased By 35%

[Benjamin]

The Association of American Railroads reported that the number of rail tankers carrying crude oil and petroleum products in the United States increased more than 35 percent during the first six months of the year, compared to 2011.

These numbers suggest in that there is an increased US demand for oil and as a result these developments put in price pressures on the oil prices.

Mainly, rail was used for the transportation of oil becasue of the luck of good pipeline infrastructure in some states such as North Dakota.

The AAR concluded that 241,000 rail tanker cars hauled oil during the six-month period ending in June, a 38 percent increase over the same period of 2011.

Moreover, North Dakota in the month of March, became the second-largest oil producing U.S. state. Oil producers in the region, however, rely on rail to get oil out of the region and BP announced that it was considering a rail project to bring Bakken crude to its 225,000-bpd refinery in Washington.

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