UPDATE 2-World Fuel Services shares fall after Quebec train wreck

Tue Jul 9, 2013 5:00pm EDT
 
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(Adds company comment on stock drop)

By Ernest Scheyder

July 9 (Reuters) - Shares of World Fuel Services Corp fell for a second day on Tuesday after the company said crude oil sold by one of its units was being carried by railcars involved in the deadly train derailment in Lac-Megantic, Quebec, last weekend.

Much of the drop in the share price occurred before official confirmation that World Fuel products were involved in the crash.

World Fuel, formed in 1984, brings together buyers and sellers for oil and other fuels across the Western Hemisphere. It does not drill for oil or directly transport it, and most of its customers are involved in aviation, shipping and trucking. The company's profit comes by extracting margins from buying and selling of fuels.

A runaway oil tanker train carrying World Fuel's crude oil derailed in Lac-Megantic shortly after 1 a.m. Saturday, exploding in a deadly ball of flames and killing at least 13 people.

The train was carrying North Dakota crude to a refinery in Saint John, New Brunswick, owned by privately held Irving Oil.

Shares of Miami-based World Fuel, one of the largest publicly traded fuel distributors in the world, fell 0.7 percent to $38.82 on Tuesday, after being down as much as 4.6 percent earlier in the session.

The stock dropped 6 percent on Monday, though official confirmation that World Fuel's products were involved in the crash did not come until after the close of trading on Monday.   Continued...