Oil rallied on Friday, supported by threats of supply cuts, but crude is poised for a second weekly drop as aggressive interest rate hikes and China’s COVID-19 restrictions hurt the demand outlook.

Russian President Vladimir Putin has threatened to halt oil and gas exports to Europe if a price ceiling is imposed, and a small cut in the OPEC+ oil production plans announced this week also bolstered prices.

Brent crude rose $1.24, or 1.4%, to $90.39 per barrel as of 0810 GMT. West Texas Intermediate (WTI) crude rose $1.05, or 1.3%, to $84.59.

In the coming months, the West will be preoccupied with the risk of losing Russian energy supplies and rising oil prices.

Brent fell sharply after Russia’s invasion of Ukraine, after rising close to its all-time high of $147 in March amid recession and demand concerns.

Despite Friday’s gains, both crude oil gauges are heading for weekly losses of more than 2%, with Brent hitting its lowest level since January this week.

The sell-off in oil prices may stop for the time being due to the overall recovery in risk sentiment.

The shortage of oil supplies supports the market. However, the European Central Bank’s 75 basis point rate hike this week and further COVID-19 lockdowns in China put pressure.

The city of Chengdu on Thursday extended the curfew for most of its more than 21 million residents, while millions in other parts of China were told to avoid traveling during the upcoming holidays.