• The Oil price slides below $100 as fears of US resuming attacks on Iran have diminished.
• US Secretary of State Rubio said that President Trump prefers a diplomatic resolution.
• Iran signals that talks with the US through Qatari mediators are still going on.

West Texas Intermediate (WTI), futures, on NYMEX, is down 2.25% to near $99.80 during the European trade on Monday. The oil price extends its correction that started after failing to progress the rally above $104.03, the five-month high posted on Friday.

The WTI price comes under pressure as fears of prolonged energy supply risks have diminished, following signals from the United States (US) that it would prioritize diplomatic resolution with Iran over resuming military action.

Over the weekend, US Secretary of State Marco Rubio said that Washington hasn’t made any decision to renews strikes on Tehran and that President Donald Trump prefers a diplomatic resolution. However, Rubio kept fears of military action alive, stating that the US retains the capabilities to achieve whatever military objective Trump decides to pursue.

Separately, the comments from Iran that talks are ongoing with Qatari mediators on a plan to reopen the Strait of Hormuz within two days if the US cooperates have also eased energy supply fears, Al Jazeera reported.

Meanwhile, lower oil prices suggest that financial markets are ignoring claims from US media personality and political commentator Tucker Carlso that Israeli Prime Minister (PM) Benjamin Netanyahu is pressing US President Donald Trump to launch a nuclear strike on Iran, alleging that Washington could take a decision on the use of nuclear weapons within days, The Times of India (ToI) reported.

WTI Technical Analysis

In the daily chart, WTI US Oil trades below $100, holding just under the 9-day exponential moving average (EMA) at $100.09, which caps the topside and keeps the near-term bias mildly bearish despite the strong rally from the mid-$80s.

Price action sitting below this short-term EMA suggests that bulls are losing traction, while the Relative Strength Index (14) around 58 stays in positive territory, hinting at still constructive momentum that has yet to translate into a clear bullish break above immediate resistance.

On the topside, the five-month high at $104.03 is the critical hurdle for oil prices. On the downside, the October 20 low at $95.05 might act as key support level.