Oil futures fell sharply Monday after a threeday weekend, with weakness attributed to concerns over the decision by the Organization of the Petroleum Exporting Countries and its allies to ease output curbs, along with indications more supply from Iran is making its way to market.

West Texas Intermediate crude for May delivery fell 1.51, or 2.5, to 59.94 a barrel on the New York Mercantile Exchange. June Brent crude the global benchmark, was off 1.57, or 2.4, at 63.29 a barrel on ICE Futures Europe.

Crude rallied 3 on Thursday after OPEC said it had agreed to allow oil production to rise by 350,000 barrels in May, 350,000 barrels in June and by 441,000 barrels in July, with Saudi Arabia gradually rolling back a voluntary cut of 1 million barrels a day that had been in place since January. The rally left WTI up 0.8 for the week, while Brent rose 0.7. Oil futures were closed for the Good Friday holiday.

Analysts said the rise in output combined with concerns over Chinese import demand may be factors in Mondays weakness.

The Financial Times reported Sunday that the Peoples Bank of China had instructed foreign and domestic lenders to keep loan growth in the first quarter at roughly the same level as last year, if not lower.

This is not great news as the commodities cycle grows longer in the tooth and oil prices could be reacting adversely to this impulse, said Stephen Innes, chief global markets strategist at Axi, in a note.

Meanwhile, analysts pointed to signs of…