Oil prices see profit taking after recent gains

Feb. 4 (UPI) -- Oil prices fell early Monday, likely due to profit taking after recent gains that also brought new support levels to prices, analysts said.

West Texas Intermediate front-month future prices fell 1 percent to $54.72 per barrel as of 8:37 a.m. EST with Brent futures 0.6 percent lower to $62.36 per barrels as of the same time.

"From its low of close to $50 (Brent) in early January, oil prices have risen 26 percent. Surely some profit taking is called for," Sukrit Vijayakar, analyst at Trifecta Consultants, told UPI.

The decline comes after price increase on Friday when WTI closed at $55.26 per barrel, after ending January at $53.79 per barrel.

"Oil is trading lower after WTI failed to find fresh buying above $55.5, a key technical level," Ole Hansen, head of commodity strategy at Saxo Bank, told UPI. "The similar level in Brent crude oil can be found at $64 per barrel."

Nicholas Cawley, analyst at DailyFX, said in a report earlier in the day that prices have new support levels after recent gains.

"Crude oil recently took out resistance at $60.63 per barrel and is now using this level as short-term support. The next important resistance level is around $2 per barrel higher at $65.59 per barrel.," the report said.