US cash crude-Bakken crude jumps days after North Dakota train crash
NEW YORK - Bakken crude oil differentials jumped $7 a barrel on Thursday after BNSF Railway Co. warned there may be delays of up to 36 hours to ship oil on rail in North Dakota following a derailment and crash earlier this week.
BNSF, owned by Warren Buffett's Berkshire Hathaway Inc , reopened two mainline tracks near the scene of the accident on Thursday but warned of delays in an advisory to customers. The company had been rerouting traffic after the accident.
In the cash oil market, Bakken oil for February delivery at Clearbrook, Minnesota traded at a $2.50-a-barrel discount to the U.S. oil contract. It had ended trading at $9.50 a barrel under the futures contract in a thinly attended market on Tuesday.
Trains carried nearly 650,000 barrels-a-day of North Dakota oil to market in October, according to the state Pipeline Authority.
The state Department of Mineral Resources, the chief regulator of the oil and gas industry, does not expect the train crash to affect production, which neared 950,000 bpd in October.
Other cash crude grades also rose as traders returned to work and oil futures prices collapsed.
Light Louisiana Sweet rose about 50 cents a barrel to trade for as m