Grangemouth refinery strike talks extended

LONDON (Reuters) - Management and trades union officials from Scotland's Grangemouth refinery extended into Wednesday mediation aimed at avoiding a strike that has threatened Britain's energy supplies, a union official said.

"We have decided to adjourn and we will reconvene tomorrow at 9 a.m. (0800 GMT)," Phil McNulty, national officer for the UNITE union told journalists. He said the union was willing to negotiate up until Sunday, the potential start day for the stoppage.

If workers go ahead with the two-day strike and force the full shutdown of the 200,000 barrel per day (bpd) refinery, Scotland and northern England could face shortages of motor fuel, especially diesel, oil traders have said.

Refinery operator Ineos said North Sea oil supplies could also be disrupted by a refinery shutdown as the pipeline bringing North Sea Forties crude to Britain terminates at the refinery.

Ineos has already started closing one of the refinery's three crude processing units as part of a safety shutdown ahead of the strike.

Analysts believe up to 20 percent of British gas supplies could also be cut if the pipeline shuts.

The British government has moved to prevent a forecourt fuel shortage by exempting oil companies from competition restrictions that prevent them from sharing stock information, helping suppliers to line up stopgap deliveries in case the refinery shuts, the Department for Business has said.

Ineos said late on Monday it had offered concessions in a letter to 1,350 refinery employees.

Concerns the strike could lead to North Sea shut-ins helped send U.S. crude oil futures to record highs near $120 a barrel on Tuesday.