By Bryan Wong
Investing.com - Oil was up on Friday morning in Asia, ending the week with gains amid growing investor confidence in fuel demand recovery generally.
Oil prices continue to be supported by indications of a slowdown in crude production. Data from both the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) during the week showed draws in U.S. crude oil supplies.
WTI futures rose 0.33% to $42.38 by 1:11 AM ET (6:11 AM GMT) and Brent oil futures gained 0.36% to $45.12, with the black liquid poised to enter a second week of gains.
But some investors sounded a note of caution amid the optimism.
“The situation has improved some, but the market dynamics are still less than stellar,” Robert Yawger, director of energy futures at Mizuho Securities, told Reuters, adding “the market is oversupplied”.
The Organization of the Petroleum Exporting Countries (OPEC) also forecasted earlier in the week that world oil demand may drop by 9.06 million bpd this year, an increase from the 8.95 million bpd decline forecasted last month.
Russian Energy Minister Alexander Novak warned on Thursday that he does not expect quick decisions on output cuts when the OPEC+ group monitoring committee meets next week.