Oil trimmed a fourth weekly decline as traders braced for impact of Hurricane Harvey on the U.S. refining hub in the Gulf of Mexico. Gasoline futures surged to the highest in four months.Front-month crude futures rose 0.5 percent in New York, paring Thursday’s 2 percent decline. Gasoline gained as much as 4.6 percent. While some oil and gas production has shut in the Gulf, the storm is bearing down on an area in the state of Texas that’s home to much of the U.S.’s refining capacity. If Harvey, currently a Category 2, makes the forecast landfall as a Category 3, it will be the strongest storm to hit since Wilma in 2005.
Oil in New York has lost almost 5 percent this month as investors weigh rising global output against supply cuts by members of the Organization of Petroleum Exporting Countries and its allies. While Harvey has curtailed some U.S. oil output, the greater impact could be on crude demand, with about 1 million barrels a day of refining capacity already shut down.
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