Oil prices may encounter resistance following a strong rally, with signs of profit-taking emerging.

Phillip Nova analyst Priyanka Sachdeva notes in a research report that crude has climbed nearly 4% so far this week, but Thursday’s pullback suggests investors are locking in gains after the sharp rise. Adding to the pressure, Iraq has resumed Kurdish oil exports, introducing a bearish factor that partially offsets the recent momentum.

Sachdeva cautions that much of the rally appears to have been sentiment-driven, making the market vulnerable to corrections as traders reassess supply-demand fundamentals. At last check, front-month WTI crude oil futures were down 0.3% at $64.70 per barrel, while front-month Brent futures slipped 0.4% to $69.05.