Aug. 29 (Bloomberg) -- Crude oil was little changed as Hurricane Gustav approached the Gulf of Mexico, amid speculation that energy producers are better prepared to face a hurricane than when Katrina struck in 2005.

``The oil and gas infrastructure around the Gulf is much more robust than it was in 2005,'' said Adam Sieminski, Deutsche Bank's chief energy economist, in Washington. ``Platforms have been jacked up and refineries have improved flood defenses.''

Prices climbed as much as $3.17 a barrel earlier today as Royal Dutch Shell Plc and BP Plc said they will pull workers from Gulf platforms and shut production in a region that pumps 26 percent of U.S. oil and 14 percent of the nation's gas. Gustav was declared a hurricane after the oil market settled.

Crude oil for October delivery fell 13 cents to settle at $115.46 a barrel at 2:42 p.m. on the New York Mercantile Exchange. Futures are up 57 percent from a year ago.

Katrina, which reached Category 5 status, the strongest type of hurricane, closed 95 percent of offshore output in the Gulf of Mexico. Almost 19 percent of U.S. refining capacity was idled because of damage and blackouts caused by hurricanes Katrina and Rita in 2005.

U.S. refineries operated at 87.3 percent of capacity last week, according to the Energy Department. Refineries operated at 97.1 percent of capacity in the week ended Aug. 26, 2005, the last week before Katrina made landfall in Louisiana.

``Refineries were nearly operating full-out at 97 percent of capacity before Katrina hit,'' said James Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois. ``They are now at about 87 percent of capacity, so if refineries are damaged, there are others that can pick up the slack.''

Oil retreated from the day's highs after the dollar gained against the euro, limiting the appeal of commodities as an inflation hedge. The dollar climbed 0.3 percent to $1.4669, from $1.4706 yesterday.

Brent crude oil for October settlement fell 12 cents to settle at $114.05 a barrel on London's ICE Futures Europe exchange.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

Last Updated: August 29, 2008 15:57 EDT