By Gina Lee

Investing.com – Oil was down Friday morning in Asia, . Funds continue to be strong that the U.S. Federal Reserve may raise interest rates faster than they expected to address high inflation.

By 11:16 ET (04:16 GMT), the price of $82.20 had fallen 0.81% and was down 0.76% at $80.97

After a volatile week that was driven by a stronger dollar and speculation about whether the U.S. Strategic Petroleum Reserve would allow oil to be released to lower oil prices, Brent and WTI futures ended the week with a flat note.

Justin Smirk, senior Westpac economist told Reuters that the market was in a well-balanced situation.

He said that although the market is tight supplied, it is more important to change the dynamic of the fuel demand. This market is transitioning away from an economic revival driven by strong demand for products, which then has fuelled energy demand, towards a stronger recovery for services.

While fuel demand is increasing due to an increase in air travel, tighter financial and fiscal policies and the winter in the northern part of winter may dampen this growth.

The Organization of the Petroleum Exporting Countries cut on Thursday its fourth-quarter world oil demand forecast by 330,000 barrels per daily from October’s forecast. This is due to high oil prices limiting the recovery from COVID-19.

According to Baden Moore, a commodities analyst at National Australia Bank (OTC), the oil market will be tight until the third quarter 2022 because of continued recovery.

Moore explained to Reuters that OPEC+ (Or OPEC+ with its allies) has demonstrated great prudence and management of the global supply in the wake of the pandemic.

OPEC+ stated that it will stick with its plans to increase the market by 400,000 barrels each day after the meeting of the previous week.