* Germany, France exploring methods to tackle debt crisis * Iran to downgrade diplomatic relations with UK * Coming up: API oil stocks data 4:30 p.m. EST Tuesday NEW YORK, Nov 28 (Reuters) - U.S. crude futures rose sharply on Monday on fresh hopes that Europe's leaders will unveil more approaches for tackling the euro-zone region's debt problems and on supply concerns tied to tensions over Iran's controversial nuclear program. U.S. crude pushed above $100 a barrel intraday, world stocks rose from last week's seven-week low and the cost of insuring euro zone government bonds against default as hopes grew that euro zone leaders would unveil fresh measures to resolve the debt crisis. Germany and France are exploring radical methods of securing deeper and more rapid fiscal integration among euro zone countries, aware that getting broad backing for treaty changes may not be possible, officials say. The International Monetary Fund said it is not in discussions with Italian authorities on a financing plan, pouring cold water on speculation that it was preparing an aid package as the euro zone debt crisis deepens. A bill to downgrade Iran's relations with Britain got final approval on Monday, state broadcaster IRIB reported, a day after parliament approved the measure compelling the government to expel the British ambassador. Iran's parliament voted on Sunday to reduce diplomatic relations with Britain, with one lawmaker warning that Iranians angered by London's latest sanctions could storm the British embassy as they did to the U.S. mission in 1979. FUNDAMENTALS * On the New York Mercantile Exchange, January crude rose $2.67, or 2.8 percent, to $99.44 a barrel by 8:55 a.m. EST (1355 GMT), having traded from $97.48 to $100.74. * China may have to import 65 percent of its oil supplies by 2015, up from the current 55 percent, according to comments from a government researcher. * Libya's Waha Oil, a joint venture with U.S. firms ConocoPhillips , Marathon and Amerada Hess , started producing on Sunday at the Dahra and Samah fields at a rate of 16,000 barrels per day (bpd), the National Oil Corporation (NOC) said. * Libya's Sirte Oil has begun crude output at the Alraqhobh field at a rate of 8,000 bpd, the NOC said. * U.S. Thanksgiving holiday weekend average spending per person rose 9.1 percent, a National Retail Federation survey on Sunday showed. MARKETS NEWS * The euro rebounded from a seven-week low on hopes of progress on the region's sovereign debt crisis ahead of a European Union summit next week. * Copper rallied to its highest in a week on the hopes for efforts to tackle the euro zone's debt crisis. * U.S. stock index futures soared on optimism over the latest round of proposals out of Europe designed to corral the growing euro zone debt crisis. UPCOMING DATA/EVENTS * U.S. Commerce Department releases new home sales for October at 10 a.m. EST (1500 GMT) on Monday. * American Petroleum Institute oil inventory data due on Tuesday at 4:30 p.m. EST (2130 GMT). * U.S. Energy Information Administration oil inventory data due at 10:30 a.m. EST (1530 GMT) on Wednesday. * NYMEX RBOB gasoline and heating oil December contracts expire on Wednesday. 8:55 LAST NET PCT LOW HIGH CURRENT DAY AGO CHNG CHNG VOL VOL CLc1 99.44 2.67 2.8% 97.48 100.74 64,807 283,449 CLc2 99.55 2.64 2.7% 97.50 100.81 14,019 69,041 LCOc1 109.31 2.91 2.7% 106.63 109.49 77,660 128,590 RBc1 2.5360 0.0871 3.6% 2.4702 2.5398 2,010 27,797 RBc2 2.5376 0.0834 3.4% 2.4734 2.5420 6,741 47,828 HOc1 2.9920 0.0647 2.2% 2.9422 2.9966 3,314 30,452 HOc2 3.0040 0.0635 2.2% 2.9486 3.0100 10,442 56,917 * NYMEX crude oil for January rose $2.67 to $99.44 a barrel by 8:55 a.m. in volume of 64,807 lots.

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