* Europe pledges new plan to recapitalise banks, resolve Greece debt
* Positive U.S. jobs data ease double-dip recession fears
* Market eyes China data this week for economic pulse (Recasts, updates throughout, previously SINGAPORE)
By Zaida Espana
LONDON, Oct 10 (Reuters) - Brent crude futures gained ground on Monday, after France and Germany said they would come up with a plan to contain the euro zone crisis, but details will not emerge until the end of the month.
Market sentiment improved after leaders Merkel and Sarkozy vowed on Sunday to hatch a new plan to deal with Greece's debt issues and recapitalise euro zone banks, although details would not be available until a G20 summit in Cannes on Nov. 3-4.
Crude futures and the euro rose on the back of the news but equity markets adopted a more muted reaction.
"It remains to be seen how markets react to this latest weekend pronouncement, as at some point, words will need to be replaced by concrete action," MF Global analysts wrote in a note on Monday.
November Brent crude futures
U.S. November crude
"There is a positive feel to problems being solved at the moment," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
"We now have a timeline in Europe which people will work towards."
German Chancellor Angela Merkel and French President Nicolas Sarkozy said on Sunday that their goal was to come up with a sustainable answer for Greece's woes, agree how to recapitalise European banks and present a plan for accelerating economic coordination in the euro zone by a G20 summit in Cannes on Nov. 3-4.
The board of Franco-Belgian Dexia bank accepted on Monday a rescue plan drawn up by the governments of France, Belgium and Luxembourg after it became the first bank to fall victim to the two-year-old euro zone debt crisis.
"Price sentiment should improve this week as European lawmakers continue to ease concerns, although oil's high sensitivity to equity markets creates additional uncertainty," ANZ analysts said in a note.
Friday's data showing job gains in the United States also eased recession fears.
SUPPORTIVE DATA
In the United States, more workers were hired in September while job gains for the prior two months were revised higher, easing fears of a double-dip recession at the world's largest oil consumer.
"The U.S. economic data suggest that we're not going into recession," Barratt said.
He added that recent drawdowns in U.S. oil inventories suggested more demand while forecasts of a cold winter could support U.S. oil prices at $85 and $86 a barrel.
Saudi Arabia sees neither a decline in global oil demand nor a reduction in the kingdom's exports due to increased output from Libya, Oil Minister Ali al-Naimi said at the weekend.
Naimi said the kingdom remained ready to meet all its customers' needs. In September, its output fell to 9.39 million barrels per day (bpd) from around 9.8 million bpd in August, he said.
Unrest in the Middle East brewed on as oppositions struggled with the governments in Syria and Yemen.
In Asia, Royal Dutch Shell Plc is restarting the largest crude distillation unit at its Singapore refinery less than two weeks after the plant was shut because of a fire, three industry sources with direct knowledge said on Monday. [IDLnL3E7LA0IJ]
The drive to partially restart the 210,000-barrels per day (bpd) CDU, one of three at Shell's largest plant capable of processing 500,000 bpd of crude, is due to strong margins for base oils and lubricants. It will also yield light distillates, sufficient to keep its chemical complex running at reduced rates, they said.
Investors will be watching for trade and inflation data from China later this week to gauge the economic health of the world's second largest oil consumer, Barratt said.
Yet the euphoria may not last as speculators have opened new short positions to bet on further price falls, data from the U.S. Commodity Futures Trading Commission showed on Friday.
Daily technical charts showed that Brent's upside was limited to $107.85/bbl while U.S. oil faced a strong resistance at $84.10 a barrel, Reuters markets analyst Wang Tao said. (Additional reporting by Florence Tan in Singapore)