Oil prices tumble on profit-taking

Oil prices ended sharply lower Thursday, as investors became cautious after recent solid gains.

On Wednesday, oil prices surged, with U.S. oil hitting 15-month highs, as official data showed a surprisingly large weekly drop in U.S. crude inventories.

The Energy Information Administration said in its weekly report Wednesday that U.S. crude inventories dropped by 5.2 million barrels to a total of 468.7 barrels in the week through Oct. 14.

Since the Organization of the Petroleum Exporting Countries proposed its first output cut or freeze in eight years last month, oil prices had risen about 15 percent till Wednesday.

Meanwhile, a stronger U.S. dollar also made the greenback-denominated oil less attractive for holders of other currencies. The dollar index, which measures the greenback against six major currencies, hit seven-month highs after the European Central Bank kept interest rates unchanged.

The West Texas Intermediate for November delivery dropped 1.17 U.S. dollars to settle at 50.43 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery decreased 1.29 dollars to close at 51.38 dollars a barrel on the London ICE Futures Exchange. Enditem