--Brent futures fall on comments EU summit won't present ultimate solution for Europe's debt crisis --Brent-WTI spread narrows significantly since Friday --US macro-economic data due later Monday awaited for clues on future oil demand By Konstantin Rozhnov Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Brent crude oil futures fell Monday amid worries Europe's sovereign debt crisis may not be tackled as soon as hoped after the Group of 20 industrialized and developing nations meeting which ended Saturday. At 1043 GMT, the front-month December Brent contract on London's ICE futures exchange was 48c, or 0.4%, lower at $111.75 a barrel. Meanwhile, the front-month November contract on the New York Mercantile Exchange was trading up 29c, or 0.3%, at $87.09 per barrel. Earlier, Brent rose to a day high of $113.86 a barrel on hopes a solution to Europe's sovereign debt crisis could be found in the coming days, following the G20 summit of finance ministers in Paris. But German Finance Minister Wolfgang Schauble said Monday the EU summit this weekend will not present an ultimate solution for the crisis. German Chancellor Angela Merkel also said "the dream of resolving all problems at the EU summit" was impossible. The comments pushed the dollar higher against the euro and brought European stock markets off earlier highs. There will be "substantial downside potential for oil prices, should the high expectations at the EU summit next weekend be disappointed," Commerzbank said. Monday's fall in Brent, as well as expiry of the November Brent contract Friday significantly narrowed the price spread between the world's two main oil benchmarks, Europe's Brent and the U.S.'s WTI. It fell to $24.43 a barrel, down from a record high of $28.10 reached Friday. But the current tightness in the undersupplied physical crude market in Europe continues to provide strong support to Brent, said VTB Capital's Andrey Kryuchenkov. "Inventories have been contracting in the past month, mostly due to North Sea tightness as well as production disruptions in Nigeria and North America at a time when Libya's output shortfall is not being fully compensated for by increased OPEC production," he said. Market participants will also be looking at U.S. macro-economic data--NY Fed Manufacturing Index for October and September's industrial production numbers--due later Monday. The U.S. economy is the world's largest oil consumer, and an economic slowdown could reduce global demand for oil, pushing prices down. At 1043 GMT, the ICE's gasoil contract for November delivery was up 75c, or 0.1%, at $952.75 per metric ton, while Nymex gasoline for November delivery was 44 points lower at $2.8203 per gallon. -By Konstantin Rozhnov, Dow Jones Newswires; +44 207 842 9956; konstantin.rozhnov@dowjones.com

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