European shares fall as oil hits crisis-era lows

LONDON: European stock markets fell further into negative territory during lunchtime trading on Monday as Brent crude oil sank to below $37 a barrel for the first time since December 2008.

The STOXX Europe 600 oil and gas sector fell 1.9 percent - making it the worst-performing sector - with shares of Seadrill, Tullow Oil and OMV all down 4 to 6 percent.

The drop in the oil price also pushed Britain's FTSE 100 into negative territory, as shares in BP and Royal Dutch Shell declined.

The growing prospect that a global oil glut will worsen in the months to come have kept commodity prices under pressure and fuelled concerns over cooling economic demand.

"The market turned around when crude turned around," said Zeg Choudhry, managing director at LONTRAD.