Oil Rallies with Labour Trouble in US Refineries, Temporary Relief for OPEC, Russia

Oil advanced for a fourth day, the longest rising streak since August, while gasoline extended gains as strikes continued at U.S. refineries that account for 10 percent of the nation’s capacity.

Futures climbed as much as 1.8 percent in New York. The United Steelworkers union’s work stoppage, which started Feb. 1 at nine sites, has resulted in the shutdown of one plant while management has taken control of operations at six other facilities. Crude stockpiles probably expanded by 3.75 million barrels last week as refiners reduced processing.

Oil is rising amid speculation that a prolonged strike will curb fuel supply in the world’s biggest consumer. Crude remains near the lowest level in almost six years because of a global surplus, with Russia producing close to a post-Soviet record while Iraq and Saudi Arabia led output increases by OPEC.

The union, which represents workers at more than 200 refineries, terminals, pipelines and chemical plants, rejected five offers made by Royal Dutch Shell Plc on behalf of companies including Exxon Mobil Corp. and Chevron Corp. since talks began Jan. 21. The sites affected by the halt can produce about 1.82 million barrels a day of fuel.

Russia, OPEC

In Russia, production was at 10.657 million barrels a day of crude last month, little changed from December’s record of 10.66 million, preliminary data from the Energy Ministry’s CDU-TEK group showed on Feb. 2. Soviet-era crude and condensate output peaked at 11.48 million a day in 1987, BP Plc data show.

The Organization of Petroleum Exporting Countries, which supplies about 40 percent of the world’s oil, pumped 30.91 million barrels a day in January, according to a survey of oil companies, producers and analysts. That exceeded the 12-member group’s target of 30 million for an eighth straight month.