OREANDA-NEWS. Most U.S. refineries should be able to weather the near-terms effects of the United Steelworkers strike due to adequate inventories, a mild winter, seasonal maintenance, and contingency plans among companies, says Fitch Ratings. However the 11 refineries now affected could see tighter refined product balances if the strike persists over a long period. This would be especially true for gasoline.

'With gas prices bottoming out and driving season around the corner, a prolonged strike could tighten up gasoline balances,' says Mark Sadeghian, Senior Director.

Gasoline consumption increased by 4.6% year over year in December and 6.4% in January, a sharp reversal of trends in previous years as substantially lower crude oil prices have led to lower pump prices. Increased demand came despite unfavorable regulatory pressures on U.S. fuel use, including the renewable fuels mandates, and CAFE (Corporate Average Fuel Economy) standards.

Fitch believes oversupply in the crude markets will gradually correct itself as industry capex cuts work their way through the energy chain. However in the near term, oversupply will pressure crude spreads and hinder some of the industry's windfall profits.

The full report, 'U.S. Refining Dashboard 2015,' is available at www.fitchratings.com.