Major European energy stocks opened lower on Monday after oil prices fell sharply.
Brent crude futures fell more than 3% during Asian trading. Prices dropped below $110 a barrel as inflation concerns eased. Hopes for a diplomatic resolution to the Middle East conflict were the main driver of the decline, easing fears of potential energy supply disruptions.
Lower crude prices put direct pressure on oil and gas producers’ revenue and profitability. Shares in Shell, BP and TotalEnergies faced downward pressure because their performance is closely tied to oil prices.