* Equities slip on worries about euro zone debt woes * Dollar strength help pressure dollar-denominated oil * Coming up: NYMEX Oct crude contract expiration Tuesday NEW YORK, Sept 19 (Reuters) - U.S. crude futures fell on Monday as concerns about euro zone debt sparked more worry about softer global demand for oil. World stocks and the euro fell sharply as investors feared a messy Greek default within weeks unless Athens implements the austerity measures demanded by its international lenders. [MKTS/GLOB] The dollar index .DXY, measuring the greenback against a basket of major currencies, was stronger. International lenders told Greece it must shrink its public sector and improve tax collection to avoid default within weeks. [ID:nL5E7KJ1NN] The U.S. 30-year Treasury bond US30YT=RR rose more than a point in early trading, outperforming the shorter maturities, which were also up on the day, as the market looked forward to more monetary easing from the Federal Reserve. [ID:nS1E78I079] The Federal Reserve holds a two-day meeting starting on Tuesday, with a policy announcement due at 2:15 p.m. EDT (1815 GMT) on Wednesday. The Fed is expected to increase downward pressure on longer-term interest rates in a bid to accelerate a sputtering U.S. recovery. [ID:nL3E7KJ06Z] FUNDAMENTALS * On the New York Mercantile Exchange, October crude CLV1 fell $1.20, or 1.4 percent, to $86.76 a barrel by 8:41 a.m. EDT (1241 GMT), trading from $86.35 to $87.75. * BP (BP.L) restarted production at the North Sea Valhall field over the weekend and exports will continue increasing in the days to come, a company spokesman said. [ID:nL5E7KJ11X] * Gulf OPEC producers that raised oil output to compensate for the shutdown of Libyan oilfields will certainly reduce production as Libya's output recovers, OPEC Secretary General Abdullah al-Badri said. [ID:nL5E7KJ07L] * Saudi Arabia produced 9.606 million barrels a day (bpd) of crude in July, 207,000 bpd less than in June, according to the latest official data published by the Joint Data Initiative (JODI). [ID:nL5E7KJ0TY] * Speculators cut their net long positions in Brent crude oil LCOc1 but raised their exposure to gas oil LGOc1 futures in the week to Sept. 13, data published by the IntercontinentalExchange (ICE) showed. [ID:nL5E7KJ1YN] * The U.N. Security Council on Friday eased sanctions on Libya, including on its national oil company. [ID:nS1E78F1KJ] * Romania's Petromidia refinery will shut down on Oct. 22 until Nov. 3 for maintenance and upgrades, operator Rompetrol Rafinare RORRC.BX said. [ID:nL5E7KJ2E2] MARKETS NEWS * U.S. stock index futures fell sharply as renewed fears of a Greek debt default prompted investors to book some of last week's gains and turn to safer assets such as gold. [.N] * The euro fell broadly as European policymakers' lack of progress on the debt crisis at the weekend fueled concerns of a messy Greek default and fears that the problems could engulf larger euro zone economies and the region's banks. [USD/] * Copper prices slid to a 2011 low as investors focused on a possible slowdown in the global economy with major developed nations mired in sovereign debt issues. [MET/L] * Gold prices rallied on fears of Greek default contagion to other euro zone countries. [GOL/] UPCOMING DATA/EVENTS * NYMEX October crude contract expiration on Tuesday. * American Petroleum Institute oil inventory data released at 4:30 p.m. EDT (2030 GMT) on Tuesday. 8:41 LAST NET PCT LOW HIGH CURRENT DAY AGO CHNG CHNG VOL VOL CLc1 86.76 -1.20 -1.4% 86.35 87.75 21,830 296,285 CLc2 86.93 -1.25 -1.4% 86.54 87.80 39,303 158,805 LCOc1 111.36 -0.86 -0.8% 111.21 112.11 44,509 219,606 RBc1 2.7692 -0.0149 -0.5% 2.7566 2.7824 1,047 48,104 RBc2 2.7444 -0.0143 -0.5% 2.7310 2.7587 943 32,853 HOc1 2.9931 -0.0158 -0.5% 2.9811 3.0062 1,788 56,013 HOc2 3.0015 -0.0156 -0.5% 2.9902 3.0139 1,528 29,240 * NYMEX crude oil for October CLc1 fell $1.20 to $86.76 a barrel by 8:41 a.m. in volume of 21,830 lots. (Reporting by Robert Gibbons; Editing by John Picinich)

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