European shares dip in early trade as oils fall

LONDON, Nov 28 (Reuters) - European shares dipped in early trade on Friday as energy stocks slipped, offsetting gains in miners, with investors training their sights on eurozone inflation data and on a key oil producers' meeting over the weekend.

The FTSEurofirst 300 index of top European shares was down 0.3 percent at 850.04 points, having risen 11.6 percent this week.

But the index is still trading down 8.5 percent on the month so far and down 44 percent year to date, reflecting a credit crisis that has piled up losses at major banks and tipped major economies into recession.

Oil shares were lower, with BP (BP.L: Quote, Profile, Research, Stock Buzz), Total (TOTF.PA: Quote, Profile, Research, Stock Buzz) and Shell (RDSa.AS: Quote, Profile, Research, Stock Buzz) falling 0.7-1.3 percent as crude CLc1 fell nearly $1 a barrel to just under $53.50.

Mining stocks were higher, with BHP Billiton (BLT.L: Quote, Profile, Research, Stock Buzz) rising 3 percent, Vedanta (VED.L: Quote, Profile, Research, Stock Buzz) up 2.8 percent and Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) rose 2 percent.

The Bank of England the European Central Bank are set to announce rate decisions next week, but analysts said that central bank moves would take time to stabilise markets.

"Interest rate cuts are not going to immediately impact on financial markets, as far as I'm concerned. Whether it's equity markets or other markets, it's going to take time," said Neil Parker, a strategist at the Royal Bank of Scotland.

Investors focused on euro zone inflation data due at 1000 GMT and an OPEC meeting over the weekend.

"We're not convinced this will establish a consensus to reduce output, but it is really going to be laying the groundwork. There does seem to be a building consensus to reduce supply, with calls from Venezuela and Iran that they would like to see prices 10 to 15 percent higher than currently," Parker said.

(Reporting by Nicholas Vinocur and Sitaraman Shankar)