Oil prices rose about 1.5% on Friday, but were headed for their first weekly loss in three weeks as inflation concerns and China’s COVID lockdowns slowing global growth offset concerns about declining Russian fuel supplies.

Brent crude futures rose $1.68, or 1.6%, to $109.13 at 0602 GMT, while West Texas Intermediate (WTI) crude futures rose $1.40, or 1.3%, to $107.53 a barrel.

Both benchmark contracts are on track to drop this week, with Brent falling nearly 3% and WTI 2%.

The market continues to be pushed and pulled by the prospect of a European Union ban on Russia’s tightening of oil supplies and concerns about weakening global demand.

Inflation and aggressive rate hikes have pushed the US dollar to 20-year highs, making oil more expensive when purchased in other currencies and limiting price increases.

But analysts remain focused on the possibility of the European Union banning Russian oil after sanctions were imposed on European units of Russian state-owned Gazprom and Ukraine blocked a key gas transit route.

A report by the International Energy Agency on Thursday expects increased oil production and slowdown in demand growth in the Middle East and the United States to fend off an acute Russian supply gap.

According to the sources, Russia’s July output would fall by about 3 million barrels per day (bpd) if sanctions against the war in Ukraine were extended or the purchase of Russian oil was deterred.