--Oil down as euro weakens against dollar, Europe stock markets slide on US jobs report --Prices under pressure as US Gulf storm moves inland, companies return crews to platforms --Support holding at $110/bbl for Brent, while Nymex crashes through $85/bbl By Selina Williams Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Crude oil futures were lower Monday as the euro weakened against the dollar and European stock markets slid on growing fears that the U.S. is heading back into recession. Prices also came under pressure as a U.S. Gulf storm moved inland and energy companies began returning crews to platforms with a view to resuming shuttered oil and gas production. At 1043 GMT, the front-month October contract on the New York Mercantile Exchange was trading down $1.62, or 1.9%, at $84.83 per barrel. The front-month October Brent contract on London's ICE futures exchange was down $1.10, or 1%, at $111.23 a barrel. Oil prices plunged Friday after the U.S. Labor Department reported the nonfarm payroll figure was unchanged from July, the worst performance since September 2010. Investors fretted the data could show the world's largest oil consumer was on the brink of a double-dip recession. Oil prices continued to fall Monday as the impact of the U.S. job report fed through into Asia and Europe trade. Nymex October crude crashed through support at $85 a barrel, while Brent support of $110 a barrel held. "[Market participants] need proof the economy is heading into recession and this is clearly not a good sign," said Thina Saltvedt, senior oil markets analyst at Nordea Bank Norge. Fears are also escalating ahead of upcoming economic releases for September, which may indicate more clearly whether the global economy is indeed going back into recession, analysts said. In the currency markets, the dismal U.S. jobs report sent the euro to its lowest level against the dollar since Aug. 12, helping to drive investors out of oil as the commodity becomes more expensive for holders of other currencies. Meanwhile, tropical storm Lee weakened to a tropical depression Monday and some companies began to redeploy evacuated workers. The storm had halted around 60% of offshore oil production and about 44% of offshore gas output as major energy producers shut down rigs and evacuated workers as the storm approached. At 1045 GMT, the ICE's gasoil contract for October delivery was down $13.25, or 1.4%, at $938.50 a metric ton, while Nymex gasoline for October delivery was down 365 points, or 1.3%, at $2.8031 a gallon. -By Selina Williams, Dow Jones Newswires; +44 207 842-9262; selina.williams@dowjones.com

Source