Oil rebounded after a weekly decline as concerns about the economic slowdown continued to weigh on the demand outlook. 

U.S. crude traded above $86 a barrel after falling almost 4 percent on Friday. In his speech at the opening of the 20th Communist Party congress on Sunday, Chinese President Xi Jinping signaled that China’s strict Zero-Covid policy, a strategy that has driven its economy this year, has not changed course. 

“The upside momentum may not last as there is no clear reason for a rally,” said Vandana Hari, Founder of Vanda Insights. 

The economic slowdown in China has contributed to several bearish factors for oil, including central banks’ aggressive monetary policy to contain inflation and a stronger dollar. This eclipsed the OPEC+ alliance’s oil production cuts, which will come into effect in November. 

Last week, the International Energy Agency warned that production cuts could plunge the global economy into recession, while the U.S. criticized the cuts. White House National Security Adviser Jake Sullivan said options to reassess US-Saudi relations include “changes in our approach to security assistance.” 

The Biden administration had previously requested more oil from producers as it battled energy-related inflation. Meanwhile, St. Louis Federal Reserve Bank President James Bullard left the possibility of increasing interest rates by 75 basis points at each of the central bank’s next two meetings.