Weak crude prices and “unfavorable” spreads inhibited Union Pacific crude-by-rail shipments, the company said during its fourth-quarter earnings call Thursday. Crude shipments by Union Pacific shed 42% in the fourth quarter as the spread between domestic WTI and foreign Brent crudes averaged a narrow 33 cents/b. When the spread is that thin, it encourages imports, which cut into markets that crude-by-rail usually services. The situation is not helped by growth in pipeline capacity, either. Crude-by-rail is more expensive than pipelines — its advantage over cheaper options was flexibility and availability, but its losing those advantages as pipelines sprout across more of the country. Looking forward, Executive Vice President of Marketing and Sales Eric Butler said crude-by-rail is in for another rough year, with “significant headwinds” from the same spreads it had trouble with in 2015. Article continues below… Crude Oil Marketwire delivers vital intelligence to help you make critical […]