Refinery strike averted as contract reached

HOUSTON (Reuters) – About 30,000 unionized workers at U.S. refineries, chemical plants and pipelines reached a deal with industry on a new basic contract on Tuesday, averting a nationwide strike that could have boosted pump prices.

The United Steelworkers union and Shell Oil Co – representing U.S. refiners – agreed to a terms of a basic contract that sets minimum wages, benefits and working conditions at 86 energy facilities.

The current contract was temporarily extended past its Sunday expiration so negotiations could continue. The union represents workers at 64 percent of U.S. refineries.

“American drivers should be breathing a sigh of relief that contract talks between refinery workers and management have been settled, preventing a strike,” said Phil Flynn, an analyst at Alaron Trading.

U.S. gasoline futures rose last week on fears that a strike could shutter refineries and tighten up fuel supplies, which are currently plentiful amid weak profit margins for refiners.

Reuters