European stocks fell on Tuesday as major energy company shares dropped due to concerns about oil demand following weak economic data from the United States and a decline in producer prices in the Eurozone for the fifth consecutive month in February.
The Stoxx 600 index closed down 0.1% as oil and gas company stocks shifted to decline after earlier gains, putting pressure on the European index.
Major oil companies such as Shell, BP, Tenaris, and TotalEnergies saw declines between 1% and 2.5% as crude oil prices gave up their early gains after data showed a drop in U.S. manufacturing activity in March to its lowest level in nearly three years, along with a decrease in new orders.
Energy stocks recorded their largest one-day gain since November on Monday after OPEC+ announced a voluntary production cut of 1.66 million barrels per day from May until the end of 2023.
The British FTSE 100 index fell 0.5%, ending a six-day winning streak and contributing to a slowdown in broader markets.
