By Gina Lee

Investing.com – Oil was up Tuesday morning in Asia, but the rising number of COVID-19 cases in Europe is raising fuel demand concerns. To curb rising gasoline prices, the U.S. may also consider releasing its crude reserves.

At 9:48PM ET, the prices rose to $82.88 (23:48 GMT) and then went up to 0.83% to $80.41.

Austria introduced a nationwide lockdown to protect its unvaccinated populace. China, the world’s top importer of oil, also continues to battle its latest COVID outbreak.

The U.S. President Joe Biden felt increasingly pressured to tap the U.S. Strategic Petroleum Reserve to lower rising gasoline prices. Crude oil dropped. New restrictions on European travel also affected sentiment,” ANZ analysts stated in a note.

Others, however, argued that any potential SPR release would have a temporary impact on the market.

“The anticipated SPR release has been largely priced into the market at this point. As time goes by and the release does not happen the market will likely drift higher,” CIBC Private Wealth Management senior energy trader Rebecca Babin told Reuters.

In the week preceding, the Organization of the Petroleum Exporting Countries reduced its forecast of world oil demand for the fourth quarter of 2013 by 330,000 barrels per daily (bpd), compared to October’s.

As supplies increase, demand is expected to fall. U.S. Energy firms increased oil production for the third week running during week prior. Rystad said U.S. shale output in December will reach levels pre-COVID-19 of 8.68 millions bpd.

Investors are now waiting for, which is due late in the afternoon.