Oil on the high side, WTI looking for more at $68.20

WTI crude is trading steadily near 68.20 after going flat for Friday's action as oil continues to fall victim to ongoing geopolitical tensions amidst the ongoing tug-of-war between OPEC's production-cutting measures and the US' supply glut.

Crude oil reached a fresh three-year high last week near 69.50, and oil looks set to finally leave behind January's tumble fear-induced tumble behind. Friday's action saw some back-and-forth action before ending last week flat after the US President Trump took aim at the OPEC's measures for keeping oil prices afloat in the global markets, and some of oil's lift has relaxed as the Middle East tensions spurred on by the political back-and-forth between the US and Russia has cooled off.

Oil prices and their relationship with US Treasuries will be swinging back into focus with yields on US 10-year notes floating closer to the critical 3 percent level, and energies traders will be looking to see how much of an effect climbing oil with have on FX moves as fossil fuel continues to climb.

US production levels have been showing signs of increasing further lately, but markets are hoping for a balance to be struck once OPEC's production-cutting measures begin to eat up global supply, and the drawdown is helping to keep oil prices near their highs even as the US is on pace to become the world's largest supplier of crude oil within the next year or two.

WTI Levels to watch

Oil has begun to pull away from its bullish trendline in recent weeks, and a pullback from the recent high near the 69.50 region could be on the cards, assuming bears are able to send WTI below the 50.0 Fibo level near 67.50, which is acting as the floor for the current action, with further support from the last swing low near 65.50.