Shares of energy producers fell as the divergence between oil prices and gasoline prices caused by Tropical Storm Harvey continued.
Gas futures gained more than 6% after Tropical Storm Harvey shut down the largest refinery in the U.S., and has now knocked out about one-fifth of U.S. capacity. The storm dropped about a foot of rain Tuesday night on the Beaumont-Port Arthur area, about 90 miles east of Houston. The nation's largest refinery, operated by Saudi Arabian Oil Co. in Port Arthur, said Wednesday morning it has initiated a full shutdown.
Exxon said it was shutting down another major facility in Beaumont, a few days after it shut its Baytown, Texas, plant near Houston, the second-largest refinery by capacity in the U.S. The refinery shutdowns mean there is less demand for oil in the U.S. and a danger of gasoline shortages.
For the week ended Aug. 25, however, oil supplies in the U.S. had fallen while gasoline supplies increased, according to data from the U.S. Energy Information Administration.
Rob Curran, email@example.com
(END) Dow Jones Newswires
August 30, 2017 17:11 ET (21:11 GMT)