Salem Radio Network News Monday, August 8, 2022

Business

Norway government summons oil workers in sign strike may end

By Gwladys Fouche, Nora Buli and Victoria Klesty

OSLO (Reuters) -Norway’s labour minister summoned oil and gas industry executives and a striking labour union to a meeting on Tuesday in a sign that the government could intervene to stop the conflict which has cut the country’s petroleum output.

Norwegian offshore oil and gas workers went on strike over pay on Tuesday, the first day of planned industrial action that could cut the country’s gas exports by almost 60% and exacerbate supply shortages linked to the Ukraine war.

By Saturday, daily gas exports would be cut by 1,117,000 barrels of oil equivalent (boe), or 56% of daily gas exports, while 341,000 of barrels of oil would be lost, the Norwegian Oil and Gas (NOG) employers’ lobby said.

The government has the power to intervene in strikes under certain circumstances, and a summoning of the two sides by the labour minister is normally a sign that a strike will end within hours.

“The minister has called a meeting between the parties,” a ministry spokesperson told Reuters. He declined to comment further.

Oil and gas from Norway, Europe’s second-largest energy supplier after Russia, is in high demand as the country is seen as a reliable and predictable supplier, especially with Russia’s Nord Stream 1 gas pipeline due to shut for maintenance from July 11 for 10 days.

The British wholesale gas price for day-ahead delivery leapt nearly 16%, though the price of Brent crude fell as fears of a global recession outweighed concerns about supply disruption, including the strike in Norway. [O/R]

(Additional reporting by Terje Solsvik; Editing by Jason Neely, David Clarke, Alison Williams, Barbara Lewis and Marguerita Choy)

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