FUNDAMENTALOVERVIEWOil prices stabilized after last week’s sharp surge, which was driven byfears of a possible military escalation over the weekend. Attention is nowturning to the third round of US–Iran nuclear talks taking place in Genevatoday. Based on the developments so far, the prospects for anagreement appear slim. In fact, the signals we are getting are actually concerning.The US has reportedly built up a significant military presence in theMiddle East, the largest deployment in the region since the 2003 invasion ofIraq. According to Reuters, Saudi Arabia has prepared a contingency plan toboost short-term oil production and exports if a potential US strike on Iranwere to disrupt crude flows from the region. At the same time, reports suggestthat Iran is close to finalizing a deal to purchase supersonic anti-shipmissiles from China, although any deployment would not be immediate.If a military conflict were to break out, oil prices would likely spikesharply, particularly due to the risk of disruption in the Strait of Hormuz, acritical chokepoint for global energy supplies. Conversely, a clear sign of USmilitary de-escalation or a breakthrough in negotiations between Washington andTehran would likely be needed for prices to retreat toward the $60 level.For now, elevated geopolitical tensions are expected to keep the oil market supported.CRUDE OILTECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that crude oil stabilised around the 66.43 level as traders turned theirfocus to the third round of US-Iran nuclear talks before picking a direction. Wecan expect the sellers to continue to step in around the 66.43 resistance witha defined risk above it to target a drop back into the 62.36 support. Thebuyers, on the other hand, will look for a break higher to increase the bullishbets into the 70.50 level next.CRUDE OIL TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, wehave also a mid-range support around the 64.14 level where aggressivedip-buyers could step in. The sellers, on the other hand, will look for a breakbelow that level to increase the bearish bets into the 62.36 support next.CRUDE OIL TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, wehave a minor downward trendline defining the bearish momentum on this timeframe.The sellers will likely continue to lean on the trendline with a defined riskabove it to keep pushing into new lows, while the buyers will look for a breakhigher to pile in for a rally into new highs. The red lines define the average daily range for today.UPCOMING CATALYSTSToday we have the third round of US-Iran nuclear talks in Geneva and thelatest US Jobless Claims figures. Tomorrow, we conclude the week with the USPPI report. This article was written by Giuseppe Dellamotta at investinglive.com.