Oil looking to extend gains, WTI approaches $63.50

• Crude is catching a lift this week, but sentiment is over-thinking each step amid trade tensions.
• Overproduction is still the name of the game, and the US is cramming too much oil into the pipes, even with the stock drawdown last week.

Crude oil is looking for the ceiling with WTI testing above 63.40.

Oil lifted around 2 percent in Monday's action, but Tuesday is seeing some hesitation as geopolitical tensions continue to ride the market. Risk sentiment has stabilized, but crude oversupply from the US continues to hamper bullish potential in the commodity.

WTI has been stuck under the 65.50 level for 2018 thus far, and OPEC constraints on production are doing little with the US on pace to become the world's single largest producer of crude oil within the next couple of years and Russia beginning to lift production figures as well.

Crude levels to watch

Action on the H4 charts shows WTI facing into a declining trendline heading into 63.60, while further resistance will be coming from the last swing high at 64.00, but a bearish correction from here will run into support from the 34-day EA at 63.95 and Monday's swing low at 62.10.