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 .

By 10:40PM ET (3:30 AM GMT), the price of $81.31 had risen 0.54% and $78.79 by 0.722%. Support was also provided by a weaker currency, which dipped on Tuesday.

The fear of a rising number COVID-19 cases which could have an impact on fuel demand has caused oil to drop during the two previous sessions. Nevertheless, investors raised concerns about the tight supply of oil from the Organization of Petroleum Exporting Countries plus its allies (OPEC+), not being able to keep pace with rising demand and support prices.

According to ANZ Research, the commodity analysts wrote that “the market can still benefit from tighter supply and increased risk from Russia.” Russia’s buildup of troops at the border with Ukraine is causing tensions that could grow into an armed conflict.

Others pointed out that OPEC’s supply increases are still below what is allowed under the OPEC+ pact of 2021. Some members, such as Nigeria, don’t produce the agreed volumes.

Craig Erlam from OANDA said that “the fundamentals remain bullish again for crude,” Reuters.

Libya is not subject to the cartel’s restrictions on supply and has seen its oil fields disrupted by maintenance works as well as disruptions in pipelines. After the December 2021 shutdown by an armed group, El Feel was able to resume production Monday.

Investors await the announcement, expected later today.