By Gina Lee

Investing.com – Oil was up on Monday morning in Asia, jumping $2 as Ukraine dug in against heavy attacks from Russia. Major oil producers have also been struggling to fulfill their supply agreements’ quotas.

After a Friday increase of 1.2%, the dollar rose to $111.25 at 12:34 PM ET (4:34 GMT). jumped 3.28% to $106.47, extending the previous session’s 1.7% jump.

The Ukrainian deputy prime Minister stated earlier that it was unlikely that Russia’s troops would surrender to the forces in Mariupol. As the conflict triggered by Russia’s invasion on Feb. 24 shows no sign of easing, some investors are questioning whether the market can replace the Russian crude supply hit by Western sanctions.

In a note, ANZ analysts stated that the market is still worried about disruptions in supply. Data suggests they have already started to impact.

The Organization of the Petroleum Exporting Countries and allies (OPEC+)’s latest report showed some members are still falling short of their agreed supply quotas. OPEC+ failed to meet its February production goal by more than 1,000,000 barrels/day (bpd). This was due to the organization’s pact that will boost output by 400,000 bpd per month in order reverse sharp reductions made in 202.

Saudi Arabia and United Arab Emirates are the only members capable of instantly increasing output. They have been resisting calls for increased production.

The International Energy Agency (IAEA) presented Friday plans to reduce oil consumption by 2.7 millions bpd in four months, citing a poor supply outlook and soaring price. These methods include carpooling, speed limits lowering, and lower costs for public transport. This could offset the estimated 3 million barrels per day of Russian crude and product that would have been off the markets by April 2022.