Taylor looked poised for a 4-1 lead but, having potted a red to leave O’Sullivan needing a snooker, he went in-off when potting the black with his next shot.
World number five O’Sullivan made a clearance of 48 to cut the deficit to 3-2.
Taylor won a nervy sixth frame in which both players missed chances, but it was vintage O’Sullivan from that point on as he punished any errors and demonstrated his exceptional cue ball control.
A superb long red got him going in the deciding frame and, with the balls in ideal position, he sealed victory with ease.
O’Sullivan, who turns 50 next month, is selective about the tournaments he competes in.
He has reached the quarter-finals of the Shanghai Masters and Xi’an Grand Prix and the final of the Saudi Arabia Masters this season.
O’Sullivan told the WST website: “It never feels like a grind when you are cueing well.
“I’m enjoying playing more than I have done for maybe over a decade.
“When I play alright, the crowd appreciate the shots and the break-building. When I click into gear, that raises the temperature in there a little bit.”
