Oil prices rose on Friday as the dollar fell and as U.S. petroleum industry braced for Hurricane Harvey, which could become the biggest storm to hit the U.S. mainland in more than a decade.
Harvey became a Category 2 storm as it crossed the Gulf of Mexico with winds of 110 mph (175 kph), 145 miles (235 km) off Port O'Connor, Texas, the National Hurricane Center said.
Refineries, terminals, production platforms and other infrastructure have begun preparations or shutdown procedures with the hurricane set to make landfall on the central Texas coast on Friday night or early on Saturday as a Category 3 hurricane. Texas is home to 5.6 million barrels of refining capacity, and Louisiana has 3.3 million barrels.
The NHC, which has warned that catastrophic flooding were expected across portions of southern and southeastern Texas, expects Harvey to move slowly and linger over Texas for days.
Some tracking models show the storm could circle back out over Gulf waters after making landfall, and then take aim at Houston midweek, giving the nation's four most populous city a double dose of rain and wind.