By Gina Lee

Investing.com – Oil was up on Monday morning in Asia, with investors expecting a tighter output from major producers. Global fuel demand was not affected by the omicron-COVID-19 variant.

By 10:47PM ET (3:47 GMT), the price had risen 0.15%, to $86.19 and by 0.34%, to $83.58. Brent and WTI futures grew upon their gains over the week.

Investors expect that omicron’s demand will ease and tighter production may cause the black liquid to reach multiyear highs.

“The bullish sentiment is continuing as the Organization of the Petroleum Exporting Countries and allies (OPEC+) is not providing enough supply to meet strong global demand,” Fujitomi Securities Co Ltd. analyst Toshitaka Tazawa told Reuters.

“If investment funds increase allocation weight for crude, prices could reach their highs of 2014,” he added.

OPEC+ declared that February oil supplies will be increased at the January 4th 2022 meeting. However, many investors worry that small producers won’t meet this agreed production. Meanwhile other producers remain cautious about pumping excessive oil due to concerns over COVID-19 epidemics.

Moreover, oil was also supported by the ongoing tensions that exist between Russia and the U.S. over Ukraine. Russia has massed 100,000 troops on Ukraine’s border, and any armed conflict could impact Russia’s oil output.

According to Reuters the U.S. discussed contingency plans with several international energy firms to ensure that they are ready for any potential conflict.

The supply problem in Asia Pacific is also of concern. China will release its oil reserves during the Lunar New Year holiday as part of a coordinated release plan by the U.S.