Oil prices are continuing to climb toward the $100 mark this week thanks to supply disruptions in Libya and expectations of a further U.S. inventory draw.
- Chevron’s (NYSE:CVX) Gorgon and Wheatstone liquefied natural gas facilities started short strikes last Friday after the last round of negotiations between the company and workers’ unions broke down without a deal.
- Loadings are still ongoing at the two LNG terminals, with 3 laden tankers departing since the short strikes began, however from Thursday onwards unions are preparing for full-blown industrial action that would halt exports altogether.
- The US major no longer expects a negotiated deal and filed three applications for an intractable bargaining declaration, with the dispute between Chevron and respective workers heard by Australia’s industrial relations tribunal on September 22.
- Accounting for 5% of global LNG supply, the prospect of Gorgon and Wheatstone facilities would mostly impact Japan’s gas imports as the East Asian country takes in almost half of their total volumes.