Oil price rally comes to a halt

Oil prices fell on Monday after surging to five-week highs. The reason for that may be the fact that the market took profits after a strong oil price rise seen last week and fueled by OPEC+ oil production cut.

According to CMC Markets analyst Tina Teng, such profit-taking might have put pressure on oil prices after they rose for five days. 

Last week, Brent and WTI posted their biggest percentage gains since March. The OPEC+ decision to reduce oil production by 2 million bpd was the driving force for the oil prices to rise.

ING experts wrote in a note that the production cut was bullish for the market. They also noted that there were still many other market uncertainties.

Analysts at banking institutions and brokerage firms have raised the outlook for crude prices. The price of Brent oil is expected to exceed $100 per barrel in the long term.