FX.co ★ MMC | CL/Crude Oil

West Texas Intermediate (WTI) futures, trading on NYMEX, are down 2.25% to around $99.80 in the European session today. Oil prices continue to fall amid a correction that began after they failed to move higher above $104.03, the five-month high set on Friday. Oil prices are falling as concerns about energy supply threats ease, amid signals from the United States (US) of diplomatic efforts over military actions with Iran. US Secretary of State Marco Rubio noted during the weekend that Washington had not yet decided to conduct attacks on Tehran and that US President Donald Trump is keen on diplomatic options for dealing with Iran. Nevertheless, Rubio left the possibility of a military attack open, saying that the US has the capacity to meet any military objectives that President Donald Trump wishes to attain. In addition, Iran's remarks that talks are underway with Qatari mediators on opening the Strait of Hormuz within the next two days provided assurances about energy supplies, according to Al Jazeera. On the other hand, the falling oil prices indicate that the global markets are paying no heed to allegations made by US political pundit Tucker Carlson that the US Prime Minister Benjamin Netanyahu is trying to convince US President Donald Trump to use nuclear weapons on Iran, according to ToI. In the daily chart, WTI US Oil remains below $100 and just under the 9-day exponential moving average (EMA) of $100.09, marking upside resistance that keeps short-term sentiment bearish, despite the sharp uptrend from the mid-$80s. The price below the short-term EMA indicates bulls are weakening, even as the relative strength index (14), hovering around 58, remains in positive territory but has not led to a bullish breakthrough. To the upside, $104.03 becomes the critical resistance level for the oil price after hitting a five-month high. Below, the October 20 low at $95.05 could serve as support.