Oil prices increased more than 3% during the week ending Feb. 26 as supply resumed in the US's largest oil-producing area, Texas, following the cold snap that affected much of the central part of the country.
International benchmark Brent crude traded at $64.79 at 1318 GMT on Friday, posting a 3.05% increase from Monday when trade at 0712 GMT registered at $62.87 per barrel.
American benchmark West Texas Intermediate (WTI) traded at $62.15 at the same time on Friday, decreasing 3.86% relative to $59.84 a barrel on Monday.
After the freeze in Texas, operations resumed in the oil production facilities and refineries. However, investors were still concerned that demand from refineries would take some time to return to normal.
Although oil prices recorded instant declines, optimism over the promising vaccination efforts, global economic data, OPEC+ production discipline and the easing of coronavirus restrictions led to an upward trend, hitting a new record high and surpassing $66 a barrel.
However, these high oil prices also led to investor concerns of producers flooding the market with surplus supplies.
The significantly high oil price predictions of US-based financial institutions also marked the week and supported the bullish oil prices.
According to forecasts of Goldman Sachs, Morgan Stanley and the Bank of America, oil prices will stay in the range of $60-75 in 2021. Experts, however, say these higher forecasts are "dabbling in speculative excess."
US Federal Reserve Chair Jerome Powell warned Tuesday that the US economic recovery is "uneven and far from complete." He said the country needs help from the central bank for "some time" to return to full employment rates.
The following day on Wednesday, Powell said the central bank would not start raising interest rates until the economic targets are achieved in employment rates and inflation.
On Friday, the increase in the value of the US dollar, which rose 0.46% to 90.55 at the time of publication, put pressure on dollar-indexed crude oil prices, making the black gold more expensive for buyers.
Investors are now awaiting the outcome of the upcoming ministerial meeting of OPEC+ on March 4 when oil-producing countries will decide whether to keep the current cuts or ease them further.
By Sibel Morrow