* Oil's plunge sends U.S. energy stocks tumbling
* Euro set for biggest weekly drop in a month on weak PMIs
* European stocks edge up as Italian markets rally
* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh (Updates to U.S. market open, changes dateline; previous LONDON)
By April Joyner
NEW YORK, Nov 23 (Reuters) - Oil prices plunged on Friday on concerns about oversupply, sending world stock markets lower as lagging energy shares weighed down Wall Street.
Both Brent and U.S. crude fell to their lowest levels since October 2017, and prices were on course for their biggest one-month decline since late 2014. Although the Organization of the Petroleum Exporting Countries is expected to curb output, rising U.S. oil supply has fueled persistent concerns about a global surplus. oil prices pushed U.S. energy shares down more than 3 percent. As a result, the benchmark S&P 500 stock index edged lower in light trading after the Thanksgiving holiday. MSCI's gauge of stocks across the globe also fell.
"Low oil prices hurt us," said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. "It's helpful to the consumer in the very short term, but it greatly impacts (capital expenditures). That's an issue."
Prices of base metals, including nickel and copper, fell sharply on worries of weakening demand in China and a slowdown in global growth as a result of trade tensions between China and the United States. response to falling oil and U.S. stock prices, benchmark U.S. Treasury yields fell to eight-week lows on Friday as investors moved to safe-haven buying of long-dated U.S. government bonds. dollar index .DXY , which measures the greenback against a basket of six currencies, also advanced, up 0.2 percent, in keeping with the theme of declining risk appetite. Dow Jones Industrial Average .DJI fell 150.43 points, or 0.61 percent, to 24,314.26, the S&P 500 .SPX lost 5.45 points, or 0.21 percent, to 2,644.48 and the Nasdaq Composite .IXIC added 0.38 points, or 0.01 percent, to 6,972.63.
Benchmark 10-year notes US10YT=RR last rose 3/32 in price to yield 3.0499 percent, from 3.061 percent late on Wednesday.
U.S. stock and bond markets were closed on Thursday for the Thanksgiving holiday and will close early on Friday.
U.S. crude CLcv1 fell 6.26 percent to $51.21 per barrel and Brent LCOcv1 was last at $58.87, down 5.96 percent on the day.
The MSCI All-Country World Index .MIWD00000PUS shed 0.02 percent.
In contrast to U.S. stocks, European equities rose, led by a rally in Italian stocks .FTMIB as the country's bond yields fell after a press report that EU Affairs Minister Paolo Savona is considering resigning over the government's decision to challenge European Union budget rules. Savona denied the report. pan-European STOXX 600 .STOXX index rose 0.4 percent. Its gains were capped, however, by weak economic data. Surveys of German and euro zone purchasing managers came in weaker than expected. disappointing readings pushed the euro down 0.7 percent. in the currency market, the pound was down 0.5 percent on concerns over the passage of an agreement for Britain to leave the European Union. is significant weakness in Europe as a whole: everything from French to German data to Brexit talk," said Bruderman Asset Management's Pursche.