WTI crude oil futures rallied 2.3% to settle at $71.8 per barrel on Friday, bouncing back from a two-day decline and securing a weekly gain of 3.7%. Investors are closely monitoring ongoing tensions in the Middle East, ceasefire negotiations, and the upcoming U.S. elections.

The anticipated talks between Israel and Hamas to address the Gaza conflict have traders on edge regarding potential Israeli strikes on Iran. Additionally, market participants are watching for potential output adjustments from OPEC+ and the implications of the US election.

The oil market has experienced significant volatility driven by Middle Eastern unrest and concerns over a potential surplus due to rising production from non-OPEC+ countries, alongside OPEC's plans to relax output restrictions.

In the coming weeks, investors will also keep an eye on Japan's election, important interest rate decisions from three major central banks, and the announcement of the new UK government's budget.

Source : Trading Economics