By Gina Lee
Investing.com – Oil was down Friday morning in Asia, ending the week on a low note. The global market tightened as investors await an Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting scheduled for the following week.
Brent oil futures were down 0.30% to $65.92 by 9:10 PM ET (2:10 AM GMT) and WTI futures were down 0.41% to $63.27.
The OPEC+ meeting will be closely watched for any changes made by the cartel to production levels as prices continue to recover.
Saudi Arabia pledged additional production cuts earlier in the year, helping to drain stockpiles and avert oversupply fears. However, there are indications that other member states will propose keeping supply steady, while Russia could push for an increase in production.
Market tightening continues in the wake of the previous week’s cold snap in Texas and the surrounding areas. Producers continue to slowly bring the millions of barrels of output that was interrupted by the weather.
The conditions saw timespreads for both New York futures and Brent futures entrenched in a bullish backwardation structure.
Goldman Sachs Group Inc (NYSE:GS). predicted that Brent futures would climb to the $70 mark through the next two quarters, with some investors even predicting a rise to the $100 mark in the longer term.
On the fuel demand side, continued signs of a slow but steady economic recovery from COVID-19 globally boosted investors sentiment. Vaccine rollouts also continue globally, adding to optimism for a quick global economic recovery.