Oil prices declined on Monday, reversing gains made during a strong rally earlier in the month. The retreat is attributed to investors cashing in on recent profits and growing apprehension regarding increasing crude oil production in the United States.

Market Analysis

Analysts suggest that the price correction was expected after the sustained upward trend. The rise in U.S. shale production is a key factor influencing market sentiment, potentially offsetting efforts by OPEC and other countries to curb output.

Factors Influencing Price

• Profit-Taking: Investors securing gains after the recent price surge.
• U.S. Production: Concerns about rising shale oil output impacting global supply.
• OPEC Strategy: Monitoring the effectiveness of production cuts in stabilizing prices.

The market will continue to monitor inventory levels and production data in the coming weeks to assess the overall supply-demand balance.