Oil up as Strike in Norway disrupts Oil and Gas Output, Prices soar to record High

1. Oil was up on Tuesday morning in Asia over supply tightness concerns as a strike in Norway threatened to disrupt oil and gas output.

Brent oil futures rose 0.23% to $113.73 by 1:09 AM ET (5:09 AM GMT) and crude oil WTI futures jumped 1.86% to $110.46.

On Tuesday, Norwegian offshore workers began a strike that will reduce oil and gas output, according to Reuters.

The strike is expected to reduce oil and gas output by 89,000 barrels of oil equivalent per day (boepd). Oil production will be cut by 130,000 barrels per day from Wednesday, accounting from around 6.5% of Norway’s production, according to Reuters.
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2. Europe’s natural gas crisis could worsen as workers in Norway – the continent’s biggest #fuel producer – went on strike on Tuesday, the union leading the industrial action said.

Around 15% of Norwegian offshore oil and gas workers are members of the striking Lederne union, according to Reuters. They are demanding pay rises to cope with rising inflation, which hit 5.7% in May – the highest since 1988, according to Statistics Norway.

Lederne union members rejected a proposed pay deal last week, according to Reuters. Other oil and gas unions in the country have accepted the agreement and are not on strike.