Europe stocks wipe out May's gains as oil surges

PARIS, May 21 (Reuters) - European stocks extended their losses on Wednesday afternoon as oil prices rose more than 2 percent to hit a fresh record high, fuelling inflation fears and concerns over the outlook for corporate profits.

U.S. crude oil futures CLc1 surged above $132 a barrel after U.S. data showed a sharp drop in fuel inventories.

At 1512 GMT, the FTSEurofirst 300 index of top European shares was down 0.9 percent at 1,337.95 points, after falling to as low as 1,336.22 points and turning negative for the month of May.

(Reporting by Blaise Robinson)