Houthi-Saudi Conflict Drives WTI Prices Higher
The price of West Texas Intermediate (WTI) crude oil has remained near the mid-$99.00s, supported by concerns over supply disruptions in the Middle East.
A widening conflict between the Houthis and Saudi Arabia has led to the temporary shutdown of the East-West oil pipeline after drone attacks from Iraq's territory near the Iranian border last Thursday.
The US-Iran standoff over the Strait of Hormuz also supports a near-term appreciation move for crude oil prices, with Iranian Supreme National Security Council Secretary Mohsen Rezaei rejecting immediate negotiations with the US, saying Tehran will not return to talks until its conditions are met.
Despite this, traders are waiting for the key FOMC decision on Wednesday, which will drive the Greenback and US Dollar-denominated commodities, including crude oil prices. The fundamental backdrop suggests a path of least resistance to the upside for WTI.