Crude prices tumble on stronger dollar

Crude prices dropped on Thursday, as the U.S. dollar went strong against the euro after the European Central Bank (ECB) unexpectedly cut interest rates. A stronger greenback makes the dollar-priced crude more expensive and therefore less attractive for buyers holding other currencies.

The ECB announced Thursday that it lowered its main lending rate to 0.05 percent from 0.15 percent. It also cut the rate on overnight bank funds parked at the central bank to -0.2 percent to- 0.1 percent.

Meanwhile, ECB President Mario Draghi said the central bank would also start purchasing non-financial private sector assets.

The euro fell more than one percent to its lowest level in more than a year against the U.S. dollar after ECB's stimulus measures.

Elsewhere, stockpiles at Cushing lost 0.4 million barrels to 20. 3 million for the week ended Aug. 29, Energy Information Administration said Thursday, matching market expectation.

U.S. national crude stockpiles dropped 0.9 million barrels to 359.6 million barrels last week, also in line with market expectation.

Light, sweet crude for October delivery moved down 1.09 dollars to settle at 94.45 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery lost 94 cents to close at 101.83 dollars a barrel.