The Oil price has finally settled in today’s trading after a week of heavy losses on the back of profit taking and some say that the price may once again head higher.

FOLLOWING a solid month of gains, investors decided to cash in on the higher prices which has driven the oil price down almost 10 percent

“After the steep rally of recent weeks, it seems quite logical that the market runs into some resistance, triggering waves of profit-taking,” said Hans van Cleef, senior energy economist at ABN Amro Bank NV in Amsterdam.

Although the oil price has pulled back sharply over the past week, some predict that the overall direction is still bullish and now may be a good time to get back in as oil resumes its uptrend which should continue until the end of the year.

 “We think it's for real, we're in the middle of a bit of a sell-off, maybe even testing the $50 level for WTI, but the sell-off is profit-taking more than anything else, and the momentum in the physical markets, joined by the momentum in the financial markets, really point to a higher price between now and the end of the year." Said Ed Morse from Citi group.

A proposed extension of production cuts by Opec members is also expected to keep the oil price well supported.