The FTSE 100 Index has lost 50.5 points, or 0.9%, to 5838.9 points this morning, led by BP.
BP has declined 9.5p, or 1.5%, to 626.5p after it said it is shutting the Prudhoe Bay oil field in Alaska because of corrosion in a pipeline. Prudhoe Bay accounts for 8% of US production.
BHP Billiton has fallen 14p, or 1.4%, to 1,016p and Rio Tinto has dropped 50p, or 1.8%, to 2,756p, as the mining companies face a strike at the world's largest copper mine in Escondida.
Xstrata has lost 26p, or 1.2%, to 2,223p. The mining company's planned rights offer to help fund its takeover of Falconbridge could cost more than $100m in fees, according to a newspaper report.
Bradford & Bingley has declined 3p, or 0.7%, to 438.25p. HSBC Holdings has raised its recommendation for shares of the company which provides a fifth of loans to UK landlords to "neutral" from "underweight".
F&C Asset Management has dropped 5p, or 2.6%, to 186p. The fund manager said its first-half loss widened to £21m £722,000 after clients withdrew money.
In Japan, the Nikkei 225 Stock Average slid 345.12 points, or 2.2%, to 15,154.06 points after a US jobs report fuelled concern higher interest rates are curbing growth in Japan's biggest overseas market.
Advantest slid 530 yen, or 4.9%, to 10,370, Komatsu lost 50 yen, or 2.2%, to 2,180, Sharp declined 53 yen, or 2.7%, to 1,923 and Matsushita Electric Industrial fell 60 yen, or 2.5%, to 2,300.
In the US, the Dow Jones industrial average declined 2.24 points, or 0.02%, to end at 11,240.35 points on Friday, as concerns about slowing growth offset optimism the Federal Reserve will pause its rate-increase cycle.
JPMorgan Chase fell 1.2%, or 54 cents, to $45.12 and McDonald's shed 1.2%, or 43 cents, to $35.41.
Amgen dropped 3%, or $2.13, to $68.79 following a court ruling which may weaken the biotechnology company's position in its bid to fend off a rival to its anemia drug Epogen.IFAonline
Three funds to watch