--Oil prices lower, tracking equities and euro on Europe's sovereign debt worries --Fall in Nymex crude bigger than in Brent due to backwardation in Brent, analyst says --Market participants await U.S. Federal Reserve meeting later this week By Konstantin Rozhnov Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Crude oil futures were lower Monday as the lack of concrete measures to solve Europe's debt crisis dragged down equities and the euro. At 1059 GMT, the November Brent contract on London's ICE futures exchange was 37 cents, or 0.3%, down at $111.85 a barrel. The October contract on the New York Mercantile Exchange was trading down 82 cents, or 1%, at $87.14 a barrel. Anticipation that a meeting of European finance ministers over the weekend would bring reassuring news on tackling Greece's sovereign debt problems was supporting oil prices last week, said Ole Hansen, manager of the futures and fixed income trading desk at Saxo Bank. But hopes of decisive action didn't materialize and prices fell. "After a good run last week, we are seeing [a] correction," Hansen said. A bigger percentage fall in Nymex crude futures than in Brent could be due to backwardation in Brent, a phenomenon where prices now are higher than prices in the futures, economist Dennis Gartman said. Backwardation in the Brent market has been caused by major supply disruptions--the absence of Libyan crude exports and problems in the North Sea. "Given this backwardation in Brent, when we are buyers of crude we are buyers of front month Brent and when we are sellers--as we are now--we are sellers of front month WTI," Gartman said, referring to the U.S. West Texas Intermediate crude futures contract. Oil prices could stay lower until the U.S. Federal Reserve meets on Tuesday and Wednesday, and the meeting itself could also fail to boost oil prices, MF Global said in a note. "Similar to the E.U. [finance minsiters meeting] build-up, we suspect the markets will come away disappointed with the Fed meeting since the central bank has pretty much run out of bullets" to stimulate the U.S. economy, MF Global said. U.S. housing data, due later Monday, could also shed light on the state of the U.S. economy, as its well-being usually has a direct impact on global oil demand. But despite negative sentiment, oil prices are unlikely to fell dramatically this week, as many supply issues remain to support prices, Hansen said. "The negative sentiment this morning seems a bit overdone," said Bjarne Schieldrop, chief commodities analyst at SEB. Oil futures could strengthen later Monday as market participants shift their focus to the tight fundamentals in the Brent crude oil market, he added. The ICE's gasoil contract for October delivery was down $2.50, or 0.3%, at $948 a metric ton, while Nymex gasoline for October delivery was 97 point lower at $2.7744 a gallon. -By Konstantin Rozhnov, Dow Jones Newswires; +44 207 842 9956; konstantin.rozhnov@dowjones.com

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