Talks resumed between United Steelworkers (USW) negotiators and oil company representatives on Sunday, in order to strike some kind of an agreement about a new contract countrywide, for the workers at US refineries.

A prospective paralyzing strike has been forestalled, with the USW telling workers on Saturday to stay on job, as they continue with the negotiations on a rolling basis each day.

Union spokeswoman Lynne Baker told AFP: "Those parties are continuing to negotiate and there is a rolling 24-hour contract extension. So there is no strike." Baker also made it very clear that, if need be, the strike can be resorted to by the steelworkers, who require to give merely a day's walkout notice to the chief refiner negotiator - Shell Oil.

In case of a strike, nearly 24,000 workers - of 74 refineries, chemical plants, terminals and pipelines - whose three-year contract was extended Saturday, would quit their jobs if their demand for healthcare and stronger worker safety provisions are sidelined.

The strike warning has lead to higher oil futures - the light sweet crude for March advanced 24 cents in New York and reached $41.68 a barrel.

However, since the demand for gasoline and other refined products has already weakened with the exacerbating recession, and the fact that US has sufficient fuel stocks, a few analysts forecast that the impact from a walkout would be limited at best.