--Crude futures down as euro slumps against dollar, European stock markets fall --Brent crude plunges through short-term support levels as stock markets slump --Investors looking to OPEC, IEA monthly oil market reports for demand clues By Jenny Gross Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- Crude oil futures were down almost 2% Monday as investors abandoned the euro, sending it to a seven-month low against the dollar on heightened concerns of a Greek default. At 1017 GMT, the October Brent contract on London's ICE futures exchange was down $1.80, or 1.6% at $110.97 a barrel. The October contract on the New York Mercantile Exchange was trading down $1.44, or 1.7% at $85.80 per barrel. Brent crude prices plunged past short-term support levels in early trade Monday as European stocks slumped and bearish sentiment prevailed after the Greek government's announcement Sunday of a new tax to cover a budget shortfall did little to reassure markets of the country's financial stability. Analysts said these factors were likely to weigh on oil prices for the rest of the day. "Europe is the fourth largest oil consumer in the world and it's not doing well at the moment, so that's most important," said Thina Saltvedt, a senior oil market analyst at Nordea Bank Norge. Speculation that Moody's may cut credit ratings of French banks was also weighing on the market, she added. Market participants will also be looking to monthly reports on the oil market from the Organization of Petroleum Exporting Countries and the International Energy Agency for an outlook on fundamentals. The closely watched IEA report is due out at 0800 GMT Tuesday. Aside from dollar strength versus the euro and risk-averse trading, expectations of increased supply and weak demand are also pushing prices lower, analysts said. Chinese crude oil imports in August were unchanged from a year ago, something that's "not hugely positive," said Olivier Jakob, managing director of Petromatrix. "On the fundamental side, we're starting to count the days before we start to see Libyan crude oil back on the market, although on small volume," Jakob added. One of the few bullish factors for oil prices this week is risk of hurricanes in the U.S., which may create some movements, Saltvedt said. Tropical Storm Nate has weakened. At 1017 GMT, the ICE's gasoil contract for September delivery was down $16.50, or 1.8%, at $923 per metric ton, while Nymex gasoline for October delivery was 394 points lower at $2.7316 per gallon. -By Jenny Gross, Dow Jones Newswires; 4420-7842-9239; jenny.gross@dowjones.com

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