By Gina Lee
Investing.com – Oil was up on Tuesday morning in Asia, with investors regaining some risk appetite as some oil producers continued their struggle to increase output.
gained 0.54% to $81.31 by 10:40 PM ET (3:40 AM GMT) and rose 0.72% to $78.79. A weaker , which edged down on Tuesday, also lent support to the black liquid.
Oil has dropped during the past two sessions, thanks to worries about soaring numbers of COVID-19 cases that could impact fuel demand. However, some investors pointed to tight supply from the Organization of Petroleum Exporting Countries and allies (OPEC+) not keeping up with demand and supporting prices.
“The market could still benefit from tighter supplies and supply risk from Russia,” ANZ Research commodity analysts said in a note. Tensions between the U.S. and Russia remain high over the Russian buildup of troops on its border with Ukraine, which could escalate into an armed conflict.
Other investors pointed to OPEC supply additions remaining below the allowed increase under a 2021 OPEC+ pact. Some member countries, including Nigeria, are not producing their agreed volumes.
“The fundamentals remain bullish for crude again, especially if OPEC continues to struggle to hit its quota as part of the 400,000 barrels per day monthly increases, as demand strengthens,” OANDA analyst Craig Erlam told Reuters.
Supply in Libya, exempt from the cartel’s curbs, has been hit by both pipeline maintenance work and oil field disruptions. However, production resumed at the El Feel oil field on Monday, after an armed group halted output in December 2021.
Investors now await , due later in the day.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.