The proposed coast-to-coast merger of Union Pacific and Norfolk Southern is bad for the industry, a rival CEO warned, and would give the transcontinental behemoth a dominant 50% share of all U.S. rail freight. “We’ve had lots of opportunities to be very clear that we’re opposed to this merger, and we don’t think it’s good for the industry,” said Katie Farmer, chief executive of BNSF Railway. “Make no mistake, this is a consolidation of almost 50% of all the rail volume…to one road. When you consolidate 50% of all rail volume that moves under one carrier, you eliminate, or significantly reduce, flexibility for customers, optionality, and ultimately there’s going to be fewer interchange points. You have one railroad that is looking to optimize their network, and based on what’s happened in the past, that is not always good for customers.”

Futures are up more than 11 percent in 2017, having entered a bull market in September. The year’s gains were driven by output cuts by the Organization of Petroleum Exporting Countries and Russia, along with geopolitical tensions in the Middle East and pipeline disruptions from the North Sea to Canada and Libya. In 2018, investors will watch whether the price recovery triggers a new flood of U.S. output. “The current highs are unsustainable in the short-to-medium term, with prices likely to head back below $60 once we get past January, but for now the season of goodwill appears to be in full swing,” said analysts led by Michael dei-Michei at consultants JBC Energy GmbH in Vienna. Click Read More below for additional information.

When the price of diesel goes up, the cost of everything else follows. Peak travel season is upon us and gasoline prices continue to soar. Americans are rightfully concerned as the cost of filling up their tank keeps going up at the pump. And while most may not pay as much thought to the price of diesel, the reality is that number weighs even heavier on their pocketbooks. Virtually every good you can think of travels by truck before it’s in your reach. And today’s trucks, by and large, run on diesel. The price of diesel is baked into the price of everything else, gasoline included. Right now, motor carriers are getting slammed by nightmarish surges in the price of diesel. It’s especially hard on smaller fleets, which don’t operate at a scale to negotiate rates down or lock prices into a contract. These small businesses account for 97% of trucking companies in the U.S., running 20 trucks or fewer.