Oil prices jump as major U.S. fuel pipeline restarts but COVID concerns cap gains

Oil prices jump as major U.S. fuel pipeline restarts but COVID concerns cap gains

Oil prices rose on Friday, reversing some of the previous day's sharp losses as stock markets strengthened and the U.S. dollar slipped, though gains were capped by the coronavirus situation in major oil consumer India.

Colonial Pipeline said late on Thursday it had restarted its entire pipeline system and had begun deliveries in all its markets. The line is the major conduit from Gulf refineries to the U.S. East Coast.

"Oil is rallying because supply is moving again, whether it is through the pipeline or the Mississippi river," said Phil Flynn, senior analyst at Price Futures Group in Chicago. "Tempering the excitement is ongoing concern about COVID cases in India."