By Gina Lee

Investing.com – Oil was up on Monday morning in Asia, with geopolitical tensions in Eastern Europe and the Middle East fanning concerns about an already-tight supply outlook. The Organization of the Petroleum Exporting Countries (OPEC+), continues to fight for increased output.

At 10:35PM ET, the price had risen 0.83% (or 3:35 GMT) to $87.80 and soared 0.81% at $85.83. Due to continuing fears about a tightening of the market, the black liquor has increased more than 10% in 2022.

Kazuhiko Sakato, Fujitomi Securities Co. Ltd.’s chief analyst, said that investors remained positive due to the geopolitical risk in Ukraine and Russia as well as elsewhere in the Middle East. OPEC+ failed to meet its output targets.

A conflict in Ukraine may cause supply disruptions across Eastern Europe. The U.S. announced that it had removed eligible relatives from the embassy in Ukraine on Sunday and advised all citizens to consider moving out of the country because of the risk of an armed conflict.

Russia could face economic sanctions if the puppet regime it has installed in Ukraine is established, British Deputy Prime Minister Dominic Raab stated on Sunday. He was responding to reports that Russia intends to install a proRussian leader in Ukraine.

Meanwhile, the United Arab Emirates grounded most private drones and light sports aircraft used for recreational purposes for a month starting Saturday said the country’s Interior Ministry. The ban follows the previous week’s drone attack on the country by Yemen’s Houthis.

On the supply side of things, OPEC+ has been struggling to achieve its goal of 400,000 barrels per hour (bpd). The cartel’s compliance with its oil production cuts rose to about 122% in December 2021, according to Reuters, a sign that some of its members continue to struggle to raise their output.

The U.S. has seen a steady decline in petroleum inventories over the past month. However, energy companies have reduced oil rigs by this week, the first cut in 13 weeks. “An expectation for higher demand in the U.S. amid cold weather also added to pressure,” said Fujitomi Securities’ Saito.