Oil prices fluctuated, with WTI crude futures falling below $76.7 per barrel after a 1.5% increase to three-month highs above $79 as traders are evaluating the escalating conflict in the Middle East. A drone attack blamed by the White House on Iran-backed militants killed US troops in Jordan, with President Biden saying the US shall respond. Also, a Houthi missile strike on a Transfigura-operated fuel tanker in the Red Sea stoked fears of further supply disruptions. Russian refined products exports are expected to decline as several refineries are under repair after drone attacks. However, the supply from non-OPEC producers and slowing demand growth are helping to constrain prices.
