UPDATE 3-Brent slips below $111 after China growth warning
* World Bank says China economic slowdown could get worse
* Money managers cut U.S. crude futures, options net longs
* Turkey retaliates against Syrian bombing
(Updates throughout, changes dateline, previous SINGAPORE)
By Christopher Johnson
LONDON, Oct 8 (Reuters) - Brent crude oil fell below $111 per barrel on Monday on concerns slower economic growth would curb oil demand, but supply worries stemming from tension in the Middle East helped check losses.
The World Bank on Monday cut its economic growth forecasts for East Asia and the Pacific region, home to two of the world's largest oil consumers, and said there was a risk the slowdown in China could be deeper and more prolonged than expected.
China has been a key prop for the world economy, and global energy demand, at a time when many developed industrialised nations have seen slower growth or recession.
Concerns about Europe persist with the region's largest economy, Germany, seeing a fall in industrial orders, while a firm dollar after a surprise drop in the U.S. jobless rate also curbed oil prices.
A stronger dollar makes commodities priced in the U.S. currency more expensive for many end-consumers.
Brent crude for November fell to a low of $110.54, down $1.48, before recovering slightly to trade around $110.95 by 0900 GMT. U.S. crude fell $1.61 to a low of $88.27.
"The World Bank's pessimistic outlook for East Asian economies and warning that China's economic slump could deteriorate further ... had a hand in pushing prices lower," said David Wech, head of market analysis at Vienna-based consultancy JBC Energy.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic - Oil in euros: Graphics - Israel/Iran: For a 24-hr Brent crude chart analysis ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> MIDEAST TENSIONS
Investors have turned more cautious as hedge funds and other large speculators cut their bets on higher oil prices for the second straight week in the seven days to Oct. 2, the U.S. Commodity Futures Trading Commission said.
Oil continued to draw support from worries about potential threats to supply as the Syrian civil conflict drags on and as Iran's dispute with the West over its nuclear program persists.
Turkey returned fire for a fifth day against incoming bombardment from northern Syria. The exchanges are the most serious cross-border violence in Syria's conflict and highlight how the crisis could destabilise the region.
The United States and Europe are looking at more economic sanctions to pressure Iran to abandon its nuclear programme.
"The overall tensions throughout the Middle East are continuing to increase," said Dominick Chirichella, analyst at New York's Energy Management Institute.
"Risk of a supply disruption is also increasing, especially if there is an overreaction by any of the main players in the region - Israel or Iran in particular."
Middle East conflicts and delays in the October loading of North Sea Forties cargoes have pushed Brent's premium
to U.S. crude to its highest since October 2011.
(Additional reporting by Florence Tan and Manolo Serapio Jr in Singapore; editing by Keiron Henderson)
Keywords: MARKETS OIL/