2017.05.2905:35:00UTC+00European Stocks Lower in Thin Trading as Oil Drops

European stocks started the week slightly in the red, as market holidays in the U.S. and the U.K. reduced trading volumes while oil prices declined.

The pan-European Stoxx 600 index slipped 0.1 percent. The index dropped on Thursday and Friday, with oil and gas shares leading losses following OPEC's decision to extend its production deal but not deepen the reductions.

All main sectors on the European benchmarks were trading in negative territory. Regional banks were among the biggest decliners, however, investors continued to lock in gains after the sector's previous run.

Intesa Sanpaolo shares dropped 1.6 percent after a report from the Financial Times stated that the Italian lender is set to close branches and cut costs in a strategy shift. The Italian lender is said to be near the completion of a plan to raise its insurance and asset management businesses.

Italy's Banco BPM and Unicredit were both almost two percent lower, which pulled down the Stoxx 600 banks sector.

Spanish-listed shares of International Airlines Group, the parent firm of British Airways, dropped 2.5 percent. BA flights have encountered huge disruptions during the weekend with more than 1,000 flights canceled following a computer system failure.

Bucking the trend was France's Biocorp which jumped six percent after the firm signed an industrialized contract with Virbac, the 7th veterinary company worldwide.