European stocks reversed early gains Thursday as an update from major energy producers prompted steep swings in oil prices. The Stoxx Europe 600 erased the morning’s advance to trade flat as falls in energy and mining companies offset gains in utilities companies. Investors continue to expect an extension to OPEC’s production cuts to be announced at the meeting in Vienna. Expectations for an extension to production cuts have helped send Brent crude up nearly 4% this month. “There seems to be a lot of shale production from the U.S. coming back online, so even with production cuts from OPEC, there is a strong risk that supply will remain very, very ample,” she added.

Source: Wall Street Journal May 25, 2017 02:48 UTC