Norwegian Oil Workers Strike Escalates Amid Fear of Short World Supplies

[CShine]

OSLO, Norway (AP) - A strike at an offshore oil field escalated Wednesday, raising fears that flows from the world's third-biggest oil exporter could dry up just as global demand is holding prices high. An industry executive described the conflict as "completely deadlocked." A Norwegian union said it would step up the strike further starting Monday, aiming to cut Norway's daily production by 715,000 barrels and disrupt natural gas supplies to Britain.

Only Saudi Arabia and Russia export more oil than this Nordic nation, which has a daily production of 3 million barrels.

Employers said they were contemplating their options, which many fear could include a lockout that would virtually halt Norwegian production. However, the Norwegian government has traditionally been quick to order an end to oil field strikes when exports crucial to the economy are threatened.

Crude prices, already high, rose only slightly on the news of the worsening labor conflict. Traders said that was partly because many buyers had adopted a wait-and-see attitude before committing themselves to such expensive oil.

http://ap.tbo.com/ap/breaking/MGBJ2SAUTVD.html

[whistle]

1. Yumpin yimminy, is Norway running out of oil also?