By Ga-Woon Philip Vahn Of DOW JONES NEWSWIRES SINGAPORE (Dow Jones)--Crude-oil futures fell in Asia Monday as caution prevailed after China's warning of a grim global economic outlook, while debt issues in Europe remained at the forefront of investors' minds. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $97.36 a barrel at 0727 GMT, down $0.31 in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose $0.02 to $107.58 a barrel. Risk assets including equities and oil started the week on a cautious note amid a lack of definitive moves to resolve the euro-zone's debt crisis. "The broad-based macro narrative that will continue to influence this market going forward remains one of a sharp contrast between economic weakness across the euro zone that will have difficulty translating to positive growth next year," energy consultancy Ritterbusch and Associates said in a note. Investors also took a step back after top energy consumer China painted a bleak picture of the global economy. "When China throws a warning, you better pay attention because it could become a lot harder to find buyers," a sales trader at GS Caltex's Mumbai office said. Chinese Vice Premier Wang Qishan said the world will likely experience a prolonged economic recession, state-run Xinhua News Agency reported Sunday. "Amid uncertainties, the one thing we can be sure of is that the global recession caused by the international financial crisis will be extended," Wang was quoted as saying. Looking ahead, however, some market participants said tight supply conditions will, prevent any major downside in oil prices. "With low spare capacity, falling inventories and an existing large supply deficit, it is only the fear of macroeconomic discontinuities that is keeping a lid on oil prices," Barclays Capital said in a research note. "Without the presence of that fear, we believe that Brent would have already reached an all-time high and climbed past $150 a barrel in an attempt to ease tightness by rationing the demand side of the market." Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 116 points to $2.4900 a gallon, while December heating oil traded at $3.0450, 125 points higher. ICE gasoil for December changed hands at $960.50 a metric ton, down $12.50 from Friday's settlement. -By Ga-Woon Philip Vahn, Dow Jones Newswires; +65-64154149; philip.vahn@dowjones.com

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