Oil prices surged on Monday as China extended liquidity measures to aid its pandemic-ravaged economy, raising optimism for a stronger outlook for fuel demand from the world’s largest oil importer.

Brent crude futures were up 66 cents, or 0.7%, to $92.29 a barrel, following a 6.4% drop the previous week. US West Texas Intermediate crude was trading at $86.17 a barrel, up 56 cents, or 0.6%, after falling 7.6% the previous week.

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China’s central bank rolled over maturing medium-term policy loans while keeping the interest rate unchanged for a second month on Monday.

A top National Energy Administration official said on Monday that the nation intends to significantly boost domestic energy supply capacity and tighten risk controls in major commodities such as coal, oil and gas, and electricity, reported Reuters. Another state official told a press conference in Beijing that China will raise reserve capacities for critical commodities even more.

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“Oil found support from a combination of factors, including Chinese President Xi Jinping’s comments at the Party Congress that reassured accommodative policies for the economy, a positive sign for demand outlook,” CMC Markets analyst Tina Teng said.

Oil prices are predicted to remain volatile as OPEC+ production cutbacks compress supply ahead of the European Union ban on Russian oil, while a strong US currency and future Fed interest rate hikes limit price gains.

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Members of the Organization of the Petroleum Exporting Countries and their allies, including Russia, stepped up on Sunday to back the drastic production cut agreed earlier this month after the White House accused Riyadh of coercing other countries into supporting the decision, according to Reuters.

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On October 5, OPEC+ pledged to decrease output by 2 million barrels per day, which will result in a decline of approximately 1 million BPD because several members are already producing below their targets.