2023.09.2819:44:00UTC+00Oil Futures Fall After Hitting More Than 1-year High, Settle Sharply Lower

Oil futures failed to hold gains and fell sharply on Thursday, due largely on profit taking.

Oil prices rose to more than 1-year high earlier in the day, riding on recent data showing a drop in crude inventories in the U.S.

Data from Energy Information Administration (EIA) on Wednesday showed crude inventories in Cushing, Oklahoma dropped to 22 million barrels last week.

West Texas Intermediate Crude oil futures for November ended down $1.97 or about 2.1% at $91.71 a barrel, coming off a high of $95.04 a barrel.

Brent crude futures settled lower by $1.26 or about 1.3% at $93.10 a barrel.

"Oil was ripe for a pullback. After coming a few dollars short of the $100 level, energy traders are quickly locking in profits given the turbulence happening in the bond market," says Edward Moya, Senior Market Analyst at OANDA. "Crude demand destruction will clearly happen globally if this bond market selloff extends. Unless a major de-risking moment occurs, the oil market will still remain tight throughout the rest of the year."