CN planning to transport crude at "very favourable pricing"

Canadian National Railway Co plans to use some additional capacity expected at the end of this year for its crude business, which it plans to “lock in for some time” at “very favourable pricing,” the company’s Chief Financial Officer told Reuters.

“We’ve taken the opportunity… as capacity will come in in the second half of the year to actually lock in crude business at very favourable pricing and to lock it in for some time with some volume commitments,” CN CFO Ghislain Houle said at the Wolfe Research transportation conference.

Canadian railway executives have remained cautious about rising crude-by-rail demand after they were forced to slash rates for shipping crude in 2015 due to the dramatic drop in global oil prices.

(Reuters)