The nationwide refinery workers’ strike has thus far had a limited impact on refined product supplies, but that could change if it drags on into the late spring and summer, according to Fitch Ratings. Fitch said today the strike’s impact has been blunted by low demand that is typical for the first quarter of the year, along with adequate supplies and strike-affected refineries’ ability to run on contingency plans. Supplies could tighten up, however, if it continues into peak driving season (Memorial Day to Labor Day).
The strike would affect companies in various ways, depending on its effects on their plant utilization rates, which refineries in a company’s portfolio are affected and how much crack spreads move up in response. Some companies have greater exposure to United Steelworkers union contracts than others. Motiva, Tesoro and PBF have most or all of their capacity covered by USW contracts. Others, such as Phillips 66 and Valero, have relatively small percentages of their capacity exposed to USW contracts. Marathon and CITGO each have a little less than half of their capacity exposed.
Twelve refineries have been affected by the strike since it began Feb. 1. Union representatives resumed contract renewal talks with Shell officials Monday.
MORE REFINING NEWS: LyondellBasell says union threatens picket line crossers
