Europe seen lower; oil declines and Greece weigh

European equities are expected to open in negative territory on Thursday as oil prices resumed their decline and Greece's disagreements with its European neighbors appear more pronounced.

The FTSE is seen opening lower by 63 points at 6,672, the German DAX down 60 points at 10,594 and the French CAC down 116 points at 4,550.

Global markets have been hit yet again with declines in the oil markets. In the U.S. on Wednesday, U.S. stocks declined as the energy sector expanded losses after U.S. crude settled down $1.78 at $44.45, its lowest since March 2009. Brent crude oil for March delivery was down $1.22 at $48.38 a barrel.

Asian indices were broadly lower on Thursday due to the rout in energy stocks and as a slew of disappointing corporate earnings weighed on regional markets.

Investors on Thursday will watch for developments in the growing tension between the new left-wing Greek government and Europe. Greece strayed from the European stance towards Russia on Wednesday, saying it did not give its consent to possible new sanctions on Russia.

Late Wednesday, European Parliament President Martin Schulz warned Greek Prime Minister Alexis Tsipras against diverging from the European Union's stance towards Russia in the Ukraine crisis, Reuters reported.

On Thursday, European markets will closely watch an emergency meeting of European foreign ministers who are discussing the escalating violence in Ukraine. Although sanctions could be extended by nine months, EU diplomats told Reuters, a final decision was not likely until next month when an EU-Ukraine summit is to be held.

With the new Greek government wasting no time in power, it also decided Wednesday to halt the privatization deal for Hellenic Petroleum, Greece's biggest refinery. Greek bank stocks fell 26 percent yesterday as investor nerves over Greece grew.