Flat UK FTSE lags euro zone peers as energy stocks weigh

LONDON: Britain's top equity index lagged its continental peers on Thursday, held back by energy shares hit by an oversupply of oil sending crude prices to a four-year low.

Oil majors such as Shell and BP were the biggest drag on a flat FTSE 100 index after Brent crude hit a a 50-month low of $75.48.

Ministers from the Organization of the Petroleum Exporting Countries were unlikely to agree a production cut to support prices at their meeting in Vienna on Thursday, sources close to the cartel said.

Oil prices having sunk 30 percent since June.

"Oil companies can't help but react to the spot oil prices as it drills down to their bottom line," Alastair McCaig, market analyst at IG, said. "Low prices might force companies to alter their production, but demand for oil is quite low anyway."

Energy stocks knocked 13 points off the FTSE 100, which was down 0.78 points at 6,728.39 points at 1142 GMT.

It lagged a 0.5 percent gain for Germany's DAX and a 0.3 percent rise for the Euro STOXX 50, supported by expectations of further stimulus measures from the European Central Bank.

The FTSE, which is hovering just below a recent two-month high hit on Wednesday, is roughly flat for the year.

Among individual stocks, Barclays rose 1.8 percent after Goldman Sachs raised its stance on the stock to "buy" from "neutral" and raised its price target to 300 pence from 272 pence.

Mid-cap Stagecoach rose 7.2 percent after Britain said it would award a contract to run trains between London and Scotland to a Stagecoach and Virgin partnership.