By Carla Mozee, MarketWatch Travel stocks gain as oil prices march lower

LONDON (MarketWatch) -- U.K. stocks dropped Friday, with oil and gas issues extending losses after the Organization of the Petroleum Exporting Countries's decision not to cut its oil-production target.

The FTSE 100 fell 0.6% to 6,682.55, as the oil and gas group slid 4%. The sector on Thursday tumbled 3.9% after OPEC said it will maintain its current production target of 30 million barrels a day. There had been some speculation in the markets ahead of OPEC's meeting in Vienna that the cartel would reduce output, in an effort to stop a recent drop in global oil prices.

U.S. crude-oil futures (CLF5) fell nearly 7% to trade below $69 a barrel, and Brent crude futures lost nearly 1%.

The selloff in oil stocks resumed Friday, pushing BG Group shares down 5%. The oil-exploration company is also dealing with pushback from some shareholders over its pay-and-bonus package plan for incoming chief executive Helge Lund.

Shares of Tullow Oil PLC fell 3.3% and oil-services provider Petrofac Ltd. gave up 2.5%. Royal Dutch Shell PLC (RDSB) was down 2.5% and BP PLC (BP) lost 2.3%.

But travel-related stocks occupied the top spots among advancers on the FTSE 100 as oil prices stretched declines. EasyJet PLC climbed 4%, British Airways's parent International Consolidated Airlines Group gained 1.5% and TUI Travel PLC gained 0.9%.

The FTSE 100 was on track for a 2% rise for the month. It would be the first monthly rise after two months of losses.

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