SAN FRANCISCO (Reuters) - Chevron Corp (CVX.N) reported a sharp decline in second-quarter U.S. refining margins and said the benefits of higher oil prices were largely offset by a weaker dollar, and its shares fell 1.6 percent.

The second-largest U.S. oil company said on Thursday the decline in second-quarter U.S. refining margins more than offset an increase in marketing margins, while margins were mixed outside its home country.

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