Crude futures fell as much as 3 percent during London's afternoon trading, as investors grew concerned over the supply glut in the market. China's substantial increase in fuel exports during July, a rising U.S. oil rig count, and the prospect for more crude shipments seen out of Nigeria and Iraq were some of the factors seen influencing sentiment, according to Reuters.
Brent and U.S. WTI were off 3 percent each at Europe's close, last standing around $49.39 and $47.09 respectively. The energy sector closed down 0.67 percent.
Meanwhile, Europe's worst performing sector was basic resources, off 1.62 percent, as metal prices posted sharp losses, on the back of a stronger dollar. Precious metals firm, Fresnillo sank 5.9 percent as spot silver fell sharply, while Glencore, Anglo American and Antofagasta all finished trade in negative territory.
ArcelorMittal ended 2.1 percent down, after its South African unit agreed to pay a 1.5 billion rand ($110 million) fine for colluding to fix steel prices, Reuters reported.