Oil prices soar as the U.S. fuel pipeline restarts, but COVID concerns still prevail
Oil prices rose on Friday. Some of the previous day's sharp losses came back as stock markets strengthened and the US dollar fell, but coronavirus concerns in major oil-consuming India limited gains.
The Colonial Pipeline, the main line from the Gulf refineries to the US East Coast, said it had restarted the entire pipeline system late Thursday and started deliveries in all its markets.
In the US capital, gasoline was almost running out on Friday, despite the resumption of the pipeline. Gas station cuts in Washington, D.C. rose to 87%, up from 79% the previous day.
Brent crude oil futures increased by $ 1.54 per barrel, or 2.3%, to $ 68.60 at 16.58 GMT. West Texas Intermediate (WTI) crude oil rose $ 1.45, or 2.3%, to $ 65.27.
Both contracts lost nearly 3% on Thursday.
Global stocks rose and the dollar depreciated on Friday after US Federal Reserve officials said there would be no immediate move to tighten monetary policy in the world's largest economy.
Because oil is priced in dollars, the weak dollar makes the commodity cheaper compared to other currencies and increases demand.
The US Department of Commerce said April retail sales ceased after a 10.7% increase in March, with an upward revision from the previously reported 9.7% increase.
India reported 343,144 new coronavirus cases on Friday and the total number exceeded 24 million, deaths from COVID-19 increased by 4,000.
Oil prices are under pressure this week due to rising coronavirus cases in India, and it is worried that the highly contagious variant that has been detected for the first time will spread to other countries.
In the US, the resumption of the Colonial Pipeline is accelerating, while Brent's updates to exceed $ 70 are likely to trigger sales by speculative market participants.
The President of the United States assured drivers this weekend that fuel supply should start to return to normal.
