08:49 AM EDT, 03/21/2024 (MT Newswires) -- Oil fell for a second day on Thursday as traders took profits after price touched a five-month high on Tuesday after a bullish inventory report and expectations lower interest rates are on the horizon.

West Texas Intermediate crude for April delivery was last seen down US$0.28 to US$80.99 per barrel, while May Brent crude, the global benchmark, was down US$0.28 to US$85.67.

The drop comes even after an an unexpected decline in US oil inventories. The Energy Information Administration on Wednesday said stocks dropped by two-million barrels last week, while the consensus analyst estimate called for a small rise, according to a Reuters poll.

Investors are also adding risk after the Federal Reserve's policy committee left interest rates unchanged at the end of their two-day meeting while continuing to forecast up to 75 basis points of rate cuts by year end.

"The FOMC meeting seemingly provided the perfect excuse to shed some length in oil during the day. Selling pressure intensified after the release of the US oil inventory data ... The price fall seems somewhat exaggerated, especially considering that the underlying fundamental picture has not changed," PVM Oil Associates noted.