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Norwegian government leaped to stop oil conflict as the effect is felt in the oil prices

Tuesday, 10 July 2012
The Norwegian government has taken a bold step to stop a pending strike that was on its way in the sector by platform workers and prevented a possible shutdown of oil production that the strike would have ensure. The government's action was saving a situation that could have cost Nkr2 billion

Labour Minister, Hanne Bjurstrom (Ap) talked of the strike being called off a few minutes after the deadline at midnight. The Minister decided on compulsory mediation in the conflict because of the enormous economic consequences of an extended conflict. A shutdown of the oil and gas supplies would have cost nearly Nkr2 billion a day, media reports say.

The price of North Sea oil fell to under a hundred dollars a barrel in the Asian market after the Norwegian oil strike was called off by Minister Hanne Bjurstr°m (AP) Monday night.

"The strike was legal, but the consequences of a lockout meant that we were forced to intervene," said Bjurstrom.
"I had to protect Norway's vital interests. It was no easy choice, but I had to do it."

It looked as though the 6500 platform workers in the North Sea would  go on strike as previously planned, caused by the break down of negotiations last week between the workers and their employers. But only a few minutes for the oil industry's employer organization, OLF's deadline expired the minister Bjurstr÷m brought the parties to the meeting.

This forced the oil workers to end their strike, which started June 24. The strike is estimated to have cost Nkr220 million a day. 15-day strike has thus cost just over Skr3 billion.

Leif Sande, leader of the largest trade union,  Industry Energy, representing more than half of the 7000 platform workers in the North Sea, says that the strikers would return to work immediately. But he was very disappointed after the announcement of compulsory mediation.

Statoil plans to immediately resume all of their production in the North Sea.
"It may take a day or two to get production going and Statoil is expected to have returned to full production within a week," the company said in a statement.

On the Asian market, the retail price of North Sea oil Brent quality $ 1.62 to $ 98.70 a barrel.  Whistle calling off the strike means one to two million extra barrels per day to the market, it affects the prices hikes right now, according to analyst Nick Trevethan of ANZ Research.
The price of U.S. light oil decreased by 77 cents to $ 85.22 a barrel.
by Team

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