More Grangemouth refinery talks

LONDON (Reuters) - More talks are likely next week between management and workers to resolve a dispute at the Grangemouth refinery that led to a two-day strike this week, a union official said on Thursday.

The two-day strike at Grangemouth, which produces 10 percent of the UK's petrol, led to fuel shortages and halved the UK's North Sea oil production.

Discussions took place in London on Thursday between union leaders and Ineos, the owner of the 200,000 barrel a day refinery, to discuss a proposal to resolve the dispute over pensions.

The UNITE union said more talks could take place next week.

"I think there will be talks but nothing has been scheduled," said Mark Lyon, a convenor for the union at the refinery.

The refinery, which reopened on Tuesday, is resuming production and has restarted its main crude unit and is due to bring back its diesel-making hydrocracker at the weekend.

Grangemouth is expected to resume full production by the middle or end of next week, union officials have said.

Fuel supplies appear adequate now, oil trade sources said on Thursday. The strike caused a spate of panic buying by motorists and spot shortages were reported in the region.

The plant's former owner BP (BP.L), still a key supplier of refined fuels to the region, has been a heavy buyer of diesel and heating oil on European spot markets since the shutdown, buying around 70,000 tonnes of fuel in open trade.