Tumbling energy shares halt European stocks' 5-day rally

viernes 28 de noviembre de 2014 05:10 GYT

* FTSEurofirst 300 down 0.5 pct

* STOXX Europe energy sector index sinks 4.5 pct

* Drop in oil prices seen weighing on euro zone inflation

* Shares in airlines surge; Air France up 8 pct

By Blaise Robinson

PARIS, Nov 28 (Reuters) - European shares fell on Friday morning, retreating for the first time in six sessions as a further drop in crude oil prices kept the pressure on energy shares and revived fears of deflation in the euro zone.

BP shed 3.5 percent, Total sank 4.1 percent, Seadrill lost 4.6 percent and Saipem slipped 4.1 percent.

A number of oil services firms including Seadrill have been forced to scrap their dividends as the sector struggles with the drop in crude prices, which is prompting oil majors to accelerate cost cutting efforts.

"At $72 a barrel, we're well below the pain threshold for many companies in the sector, as well as many exporting countries such as Iran, Libya or Russia," said IG France's chief market analyst, Alexandre Baradez.   Continuación...