Now in its second day, UNITE’s walkout has the markets in havoc. Despite extra shipments to Scotland to prevent shortages, oil has hit a record $119.93 turning a small pension disagreement in to an international impasse.
The Scottish government reports that five out of its 956 filling stations are out of oil and a further 70 running low. The British government is losing over £1m every hour the strike continues. Fears of a shortage may be exaggerated, Scotland consumes 6000 tonnes of fuel daily and incoming shipments are expected to reach 65,000 tonnes, but Grangemouth is one of several supply concerns pushing up the futures price. A five day workers’ strike in Nigeria continues to cut output and a helicopter crash at a Naftogaz off-shore oil platform killed 19 this morning.
Despite this harsh outlook, the worst supply concerns have been absorbed in to the market already. This morning’s erratic trading is unlikely to continue by tonight. Traders are wary of pushing the price higher due to the upcoming inventory and Federal Reserve meetings this Wednesday.
A high American surplus and a stronger dollar will drop the price considerably and any shocks between today and Wednesday will have little upward effect. The Grangemouth strike is causing panic amongst Scottish consumers but the international markets have little to fear.
Oil Energy Money 
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