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Mexico City, New York Drivers Set to Battle for European Fuel

  • A great bidding war could take hold for European gasoline
  • Texas Gulf Coast ports to stay closed for about another week
A Marathon Petroleum Corp. oil refinery stands after Hurricane Harvey in Texas City, Texas, U.S., on Tuesday, Aug. 29, 2017. Estimates for damages caused by Hurricane Harvey are climbing with the storm poised to regain strength in the Gulf of Mexico before crashing back on land.
Photographer: Luke Sharrett/Bloomberg
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Harvey’s destructive path has crippled fuel production at refineries along the U.S. Gulf Coast, spurring competition between customers in New York and Mexico for alternate supplies.

The storm, which hit the Gulf Coast as a Category 4 hurricane, may shut as much as 30 percent of U.S. refining capacity this week, according to energy investment consultant Tudor, Pickering, Holt & Co. On top of that, the Ports of Corpus Christi and Houston, where hundreds of thousands of barrels of gasoline and diesel depart each day for Mexico’s East Coast, are expected to be closed for days.