By Gina Lee

Investing.com – Oil was up on Tuesday morning in Asia clawing back some of the previous day’s losses. As geopolitical tensions in Eastern Europe and Middle East rise, there are growing concerns about possible supply disruptions.

By 10:22 ET (03:22 GMT), the price of $85.93 had increased by 0.59% and was up 0.46% at $83.69.

The previous week saw the black liquid reach seven-year highs, thanks to tightening supplies and an increase in global fuel demand.

Chiyoki, Sunward Trading’s chief analyst said that the market tone is strong and supported by increasing geopolitical risks.

Chen said that profit taking occurred Monday as oil prices rose and Wall Street briefly fell amid worries about the U.S. Federal Reserve’s policies to decrease economic stimulus. However, the buying demand for oil was strong.”

U.S. share prices ended Monday on a rollercoaster ride, with the stock market ending higher after posting large losses in earlier sessions. As uncertainty over geopolitical tensions grew and Fed tightening monetary policy, investors turned to safer-haven assets.

Tensions between the U.S. Russia and Ukraine continue. The U.S. is keeping its forces ready and sending fighter jets and more ships to Eastern Europe. Russia condemned the “hysteria of the West” regarding the buildup of troops at the Ukraine border.

On Monday, the Houthi movement in Yemen launched its latest attack on the United Arab Emirates (UAE). Officials from both the U.S. & UAE say that an attack was launched against a U.S. military installation, but it was stopped by U.S. Patriot interceptors.

Lower U.S. oil inventories have also helped oil gain momentum in the U.S. Crude inventories at Cushing, Oklahoma’s NYMEX WTI delivery location are at their lowest level since 2012

Now, investors are waiting for a later date.

Portfolio investors increased their oil bullishness for the fifth week in a row, as some countries are starting to recover from recent COVID-19 epidemics. Governments also begin to ease travel and business restrictions.