VIDEO: Oil Train Derails In The US Causing MASSIVE EXPLOSION!

A GIGANTIC explosion caused by a mile-long oil train derailing has been captured on camera.

Despite the spectacular eruption from the train, which was carrying crude oil through the town of Casselton, North Dakota, no one was injured from the blast.

However authorities feared the massive plumes of smoke could overwhelm the small town and as many as 300 residents were evacuated from the area as a precaution.

The BNSF Railway Company train came off the tracks at about 2:30pm on Monday with as many as 10 cars catching fire.

FIREBALL: A monster fireball erupts from the derailed oil train which crashed near the small town of Casselton in North Dakota [AP]

The fire was still burning hours later as night fell and authorities have said the train will be allowed to burn out before a salvage operation can begin.

It is not yet clear what caused the train to derail although there are reports that another train was involved.

BNSF spokeswoman Amy McBeth said the second train, which was carrying grain, derailed first before knocking several cars of the oil train off the tracks.

Casselton residents were urged to stay indoors following the crash.

EXPLOSION: The explosion and subsequent fire could be seen from miles away [AP]

DAMAGE: This aerial shot gives an indication of the scale of the damage caused by the incident [REUTERS]

Hannah Linnard was at a friend's house about half a mile from the crash.

She said: "I looked out the window and all of a sudden the train car tipped over and the whole thing was engulfed in flames and it just exploded.

"The oil car tipped over onto the grain car."

Terry Johnson, the manager of a grain dealer near the crash site claimed he heard multiple explosion following the incident.

"Each one, you could the explosion," he said.

"It shook our building and there was a huge fireball."

A Daily Star Report.