- One of the nine U.S. oil refineries and chemical plants where union workers are striking has shut down, but the other refineries so far are running normally as operators initiated contingency plans, calling on trained managers as replacement workers.
- Tesoro (TSO) says its 166K bbl/day Martinez, Calif., refinery, was being shut because it was in the midst of planned maintenance work; TSO says management was operating its refinery in Carson, Calif., and that managers were set to take over from union workers at its plant in Anacortes, Wash.
- Other companies hit by the strike so far are Royal Dutch Shell (RDS.A, RDS.B), Marathon Petroleum (NYSE:MPC) and LyondellBasell (NYSE:LYB).
- If a new agreement isn’t hammered out this week and the strike spreads, “You can forget about $2 gasoline,” says Carl Larry, director of oil and gas at the Frost & Sullivan consulting firm. “People are going to be freaked out."
- Crude oil prices are rising this morning, as investors focus on the falling U.S. rig count that signals lower production ahead; WTI +0.5% at $48.50/bbl, Brent +1.1% at $53.60.