Oil Shares Drag European Stocks Lower, delaying new projects under way in Egypt
Reuters, Paris,

European shares dipped on Monday, led lower by oil stocks which tracked falling crude prices as expectations of an imminent U.S.-led strike on Syria faded.

Europian giants Royal Dutch Shell, Total and Repsol fell 0.6 to 1.3 percent each, while Brent crude was down $2 a barrel to just above $114 after U.S. Secretary of State John Kerry said Syria could avoid a strike by turning over chemical weapons within a week.

In the same sector, BG was the biggest loser among European blue chips, tumbling 5.1 percent after slashing its production outlook for the third time in a year, citing delays in getting new projects under way in Egypt and Norway.

The FTS Eurofirst 300 indexes of top European shares ended 0.2 percent lower at 1,228.07 points, retreating from a 3-1/2 week high hit on Friday. The euro zone’s blue-chip Euro STOXX 50 index lost 0.2 percent to 2,798.31 points.

Oil stocks have outperformed the market since mid-August, but fading expectations of military action against the Syrian government prompted investors to cash in profits.

 

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