WTI trades inside Monday’s range despite persistent oil supply risks

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WTI trades inside Monday’s range despite persistent oil supply risks
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West Texas Intermediate (WTI), futures on NYMEX, remain choppy around $85.00 as investors watch for further development in the Israel-Hamas conflict.

The oil price remained choppy from Tuesday as investors await further development in Middle East tensions. Iraq and Yemen military threatened to target the US if it intervened in Middle East conflicts to support Israel. Neutral commentary from Fed policymakers has sent the US dollar on the backfoot. Other Middle-East countries favor Palestine's attack on Gaza to invade Israel while Western nations continue supporting Israel and promised to provide military aid.

Meanwhile, military troops from Iraq and Yemen have aligned with Iran and have threatened Washington if it intervenes to support Israel, Reuters reported. The US Dollar remains on the backfoot as Federal Reserve policymakers support keeping interest rates unchanged in November due to rising US Treasury yields. San Francisco Fed Bank President Mary Daly said that the risk of little over-tightening is not expected to outweigh the risk of raising rates too much.

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