Oil rises on concerns geopolitical risks could tighten supplies

•  Oil prices rose on Tuesday on concerns supplies could become tight due to Ukraine-Russia tensions, threats to infrastructure in the United Arab Emirates and OPEC+ struggling to hit its targeted monthly output increase. 
• Analysts noted that oil price rise came despite a drop in equities markets and the possibility of an interest rate hike by the U.S. Federal Reserve on Wednesday. Brent futures rose $1.14, or 1.3%, to $87.41 per barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.21, or 1.5%, to $84.52/b. 
• "The oil complex is advancing on continued supply tightness and geopolitical risk, but the decline in equities and strong dollar are bearish," Jim Ritterbusch, president of energy advisory firm Ritterbusch and Associates, said in a note. 
• The United States is in talks with major energy-producing countries and companies around the world over a potential diversion of supplies to Europe if Russia invades Ukraine, senior Biden administration officials said. 
• Also fueling supply concerns is the difficulty encountered by OPEC+, which comprises the Organization of the Petroleum Exporting Countries along with Russia and other producers, with efforts to hit its targeted monthly output increase of 400,000 barrels per day beginning February. 

 (Source: Reuters)