(Source: MSN, January 10, 2012)
NEW YORK — Iran’s threat to block the Strait of Hormuz, through which almost 35% of the world’s seaborne oil shipments travel, could lead to a sharp increase in oil prices worldwide. This alone has kept oil prices above $100 per barrel in the last week.
Energy analysts have stated that Iranian action could lead to an increase of 50% or more in the price of oil. Rising fuel prices could help fuel-efficient railroads, such as Norfolk Southern Corporation, CSX Corporation, and Union Pacific Corporation as traffic would be diverted away from trucking. However, it could also put pressure on rail companies’ margins as fuel represents a major portion of their operating costs.
Full story: www.msn.com