When oil prices rise, is this positive or negative for railroad stocks?
Tuesday, April 28th, 2009
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.
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.