Refinery Strike May Mean Higher Fuel Prices
More than 800 staff walked off the job early Sunday at an oil refinery in Carson because of a labor dispute, joining staff at eight other refineries around the nation.
Nationwide strikes have been rare within the refining enterprise. The final one occurred in 1980, and it took three months to resolve. If this dispute lasts that long, analysts say gasoline prices international crude oil price in 2014 might rise.
“It’s very attainable we might have seen the international crude oil price in 2014 final of two greenback gasoline in the close to time period,” mentioned Carl Larry director of oil and gas at consulting firm Frost & Sullivan. “Without production from these refineries, we’re going to see tighter provide and higher prices.”
Making matters worse, many refineries are switching over to summer time mix fuel, which is cleaner burning, but in addition costlier.
Jim Burkhard, Managing Director at IHS Cambridge Vitality Research Associates, cautions that it is just too soon to know what the impact of the strike will be, and even though the steelworkers have 64 percent of U.S. oil output of their fingers, there’s nonetheless a number of other supply.
“Remember the oil market general could be very effectively supplied proper now,” stated Burkhard. “There’s plenty of refining capability around the world, you’ll just have some modification of commerce flows.”
The Carson refinery processes 363,000 barrels per day at peak capability and employs 1,450 staff. Tesoro Corporation, which operates the plant, says it’s been planning for a strike and can proceed operations.
“Tesoro is confident that the corporate can proceed to safely operate the refineries and meet customer commitments international crude oil price in 2014 until decision is reached with the [United Steel Employees],” Tesoro stated in a written statement.
The USW represents employees at sixty five U.S. refineries. It says the amenities the place employees have not walked out will proceed operating below a rolling 24-hour contract extension.