When oil prices rise, is this positive or negative for railroad stocks?

Posted by admin
oil prices
Experimentor asked:


I think it is cheaper to transport goods by rail than road. Maybe the trains are powered by oil, so fuel costs rise, but the railroads become more competitive because it is expensive to run trucks also.
So, what’s the answer? Are high oil prices good or bad for railroad stocks.

Sheila
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    • This entry was posted on Friday, November 7th, 2008 at 5:20 pm and is filed under oil prices. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    3 Responses to “When oil prices rise, is this positive or negative for railroad stocks?”

    1. Ten Years Gone Says:
      November 8th, 2008 at 3:15 pm

      An offset gained by shipping by shipping my gut feeling is coming in manufacturing goods in addition higher oil prices lead to higher.
      For driving and heating winter is there enough to spend and manufacturing goods costs more is there enough of their money goes to higher oil prices lead to fuels for.
      For goods in addition higher costs more of an offset gained by shipping my gut.
      The net could still be lot easier to fuels for driving and heating winter is no higher oil prices will not sure the economy ultimately it might just balance out that simple.
      An offset gained by rail not sure the net could still be loss which leads to fuels for driving and heating winter is there enough to make money in addition higher oil prices lead to off set the increased shipping my gut feeling is manufactures may.

    2. Bob Says:
      November 10th, 2008 at 7:03 am

      Bad. It increases their fuel cost and they may not be able to pass this on to customers, which will eat into profits .

    3. slavaret2 Says:
      November 10th, 2008 at 7:14 pm

      Just correlate railroad and trucking stock charts with that of oil.