Tampa: Members of the United Steelworkers Union (USW) went on strike at nine U.S. refineries last week following a breakdown in contract negotiations.
Eight of the refineries continued operations with replacement managers and workers, but Tesoro Corp’s 166,000 barrel/d refinery in Martinez, Calif., already operating at half capacity due to a planned turnaround, was shut down. The affected refineries represent roughly 10 percent of the nation’s refining capacity.
The USW represents about 30,000 hourly workers at 63 refineries, accounting for approximately two-thirds of U.S. refining capacity. At least five contract offers had been rejected by the USW as of Feb. 5, matching the total number rejected during the most recent round of negotiations in 2012. The last national refinery workers strike occurred in 1980 and lasted for three months. The USW threatened to strike at more refineries should talks fail to progress.
Sources expected the strikes to have little to no effect on refinery operations, citing oil companies’ foresight in training and housing replacement workers.
Domestic refining capacity rose for a second consecutive week, according to the U.S. Energy Information Administration. Utilization for the week ending Jan. 30 stood at 89.9 percent, up 1.9 percent from the prior week’s 8.0 percent, and also higher than last year’s 86.1 percent and the five-year-average of 85.5 percent.
Average daily inputs ticked up to 15.544 million barrels/d, a 288,000 barrel/d increase from the previous week’s 15.256 million barrels/d.
The first-quarter price of molten sulfur delivered to Tampa was $147/lt CFR, and increase of $18/lt from fourth-quarter 2014.
U.S. Gulf: Sulfur sold from the Gulf was called $160-$165/mt FOB, up from the prior week’s $155-$165/mt.
Vancouver: With many anticipating the Chinese spot market to maintain strength throughout the Lunar New Year holiday, most market watchers labeled Vancouver prices in a range of $165-$175/mt FOB.
A byproduct of the offshore market’s extraordinary January volatility, sources speculated that essentially all offshore transactions so far in 2015 have been conducted on a spot basis, with few if any first-quarter contracts concluded.
Sources spoke of persistent issues plaguing Alberta’s massive Syncrude 21 refinery, including a malfunctioning degassing unit. Temporary repairs may allow loading to resume sometime during the week of Feb. 9, though more permanent repairs will eventually be necessary.
The price of Alberta sulfur was quoted at (-)$10-$75/mt.
West Coast: West Coast sulfur was higher for the week at $160-$165/mt FOB, up from $155-$160/mt FOB at last report.
Molten sulfur sold from California was called $90-$130/lt FOB for the first quarter.
Benelux: Benelux sulfur was unchanged at $158-$172/mt for the fourth quarter.
ADNOC: Following upward moves from other Middle East producers, ADNOC increased its February price to $180/mt FOB, a $22/mt jump from January’s $158/mt FOB.
Aramco: The price of Saudi Aramco sulfur was set at $180/mt FOB for February. Aramco is expected to release its March price shortly.
Tasweeq: Qatar sulfur was $182/mt FOB for the month of February.