Oil end the week with an increase of more than 4%

Oil prices extended gains on Friday as investors assessed the ongoing conflict in the Middle East and ceasefire talks ahead of next month’s U.S. elections.

At settlement, Brent crude futures for December delivery rose 2.25%, or $1.67, to $76.05 a barrel, for a weekly gain of 4.1%.

Nymex crude futures for December delivery, the most active contract, rose 2.25%, or $1.59, to $71.78 a barrel, up 4.5% since the start of the week.

“Geopolitical tensions are the main driver today, otherwise we’ll have to wait and see what happens with the U.S. elections and where the markets are going to go,” said Tim Snyder, chief economist at research firm Matador Economics.

Prices have been volatile this week, rising on Monday and Tuesday before falling on Wednesday and Thursday, largely driven by expectations of rising or falling risks in the Middle East.

In the Middle East, US Secretary of State Antony Blinken stressed the urgent need to reach a diplomatic solution to the conflict in Lebanon, a day after saying that Washington does not want the Israeli campaign in Lebanon to drag on, calling for the protection of civilians.

US and Israeli negotiators are expected to resume talks in the coming days aimed at reaching a ceasefire and releasing hostages.

Geopolitical tensions have seen prices fluctuate this week, with prices rising on Monday and Tuesday before falling on Wednesday and Thursday, a move that was largely driven by expectations of risks in the Middle East.

On the other hand, Goldman Sachs kept its oil price forecast unchanged at $70-$85 per barrel for Brent crude in 2025, and the bank expected the impact of any stimulus in China to be modest compared to larger factors such as oil supplies from the Middle East.