By Gina Lee

Investing.com – Oil was up on Tuesday morning in Asia opening higher after falling sharply during the prior session. However, fuel demand concerns as more COVID-19 lockdowns could be possible in China and a  near a two-year high remained on investors’ radars.

By 11:54PM ET, $103.40 had been reached (3:54 GMT) and prices were up by 0.97% at $99.50. Brent and WTI were down about 4% in their previous sessions. Brent dropped as low as $7 per barrel while WTI fell approximately $6 per barrel.

In Shanghai, COVID-19 lockdowns entered their fourth week. The city’s largest shopping area, as well as its biggest, has been causing fears about a lockdown and fuel demand concerns. China is the world’s second-largest fuel importer.

Edward Moya, OANDA’s senior market analyst said that the Chinese lockdowns have a hit of more than a million barrels per day. He also stated in a note that the test of twelve districts within the next five days would determine the next big move in crude oil prices.

On Monday, however, the dollar dropped to near its two-year peak. Oil was therefore more expensive for all currency holders.

Moya of OANDA stated that supply fears were not the focus for traders in energy, adding that there is now a surge dollar which puts extra pressure on all commodities.

Investors await the announcement, expected later today.