U.S. railroads push against oil industry demands for storage in rail cars

U.S. railroads push against oil industry demands for storage in rail cars

NEW YORK (Reuters) - Railroads are clamping down on rising demand from oil companies to store crude in rail cars due to safety concerns, sources said, even as the number of places available to stockpile oil is rapidly dwindling.. Federal regulations discourage shippers and railroads from leaving crude oil in transportation for an extended time," transportation lawyers at Clark Hill LLC wrote in an article Thursday.. Demand is falling so swiftly that rail cars loaded with crude may not be accepted by the time they reach their destination three-to-five days later, leaving barrels orphaned without a storage option, one trader said.. Rates to lease rail cars have dropped sharply due to the crash in oil prices, making them more attractive for storage..