KONTAN.CO.ID - LONDON. Oil rose on Friday supported by real and threatened cuts to supply, although crude was set for a second weekly decline as aggressive interest rate hikes and China's COVID-19 curbs weighed on the demand outlook.

Russian President Vladimir Putin has threatened to halt oil and gas exports to Europe if price caps are imposed and a small cut to OPEC+ oil output plans announced this week also supported prices.

Brent crude rose $1.36, or 1.5%, to $90.51 a barrel by 1200 GMT. U.S. West Texas Intermediate (WTI) crude climbed $1.55, or 1.9%, to $85.09.

"Over the coming months, the West will have to contend with the risk of losing Russian energy supplies and oil prices soaring," said Stephen Brennock of oil broker PVM.

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Brent is down sharply from a surge in March close to its all-time high of $147 after Russia invaded Ukraine, pressured by worries about a recession and demand.

Despite Friday's bounce, both crude benchmarks were headed for a weekly drop of more than 2%, with Brent this week hitting its lowest since January.

"I think the sell-off in oil prices may come to a pause for now due to a recovery in risk sentiment across the board," said CMC Markets analyst Tina Teng, adding that a weaker dollar and falls in bond yields have offered support for a rebound in risk assets.

While supply tightness supports the market, the European Central Bank's unprecedented rate hike of 75 basis points this week and more COVID-19 lockdowns in China have weighed.

The city of Chengdu extended a lockdown for most of its more than 21 million residents on Thursday while millions more in other parts of China were told to shun travel during upcoming holidays. 

Editor: Herlina Kartika Dewi