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UPDATE 3-Oil slips towards $110 on weak Chinese data

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Published: Monday, 11 Mar 2013 | 6:13 AM ET
By: Dasha Afanasieva and Ron Bousso

* China industrial production lowest since October

* Dollar near highs vs yen on jobs

* Arab League clears member states to arm Syria rebels

* Coming up: OPEC, IEA release monthly reports this week

(Recasts, changes dateline from previous SINGAPORE)

LONDON, March 11 (Reuters) - Oil fell towards $110 on Monday as the latest data from China revived worries over the economic recovery in the world's second-biggest oil consumer.

Chinese industrial production in January and February was the lowest since the economy started recovering in October 2012, while the consumer price index rose to a ten-month high, data showed.

Brent crude fell 62 cents to $110.23 a barrel by 1000 GMT, after ending last week marginally higher, to snap three straight weekly losses. U.S. oil slipped 19 cents to $91.76.

"This morning we're starting to lose the punch from Friday due to bearish statistics from China, with very disappointing retailer growth," said Bjarne Schieldrop, commodity analyst at Stockholm-based SEB. "The statistics are hurting commodities overall. Trading is back to the underlying bearish sentiment."

Some analysts pointed out that Chinese data was distorted by the New Year holidays at the beginning of February.

"China's growth story overall remains intact as the authorities will do whatever they can to ensure they maintain 7.5 percent growth," said Ric Spooner, chief market analyst at CMC Markets in Sydney.

Brent futures slipped on Friday after the U.S. dollar rose to a 3-1/2-year high against the yen and a three-month peak against the euro following robust growth in employment.

A stronger greenback can weigh on commodities priced in dollars, such as oil.

On Monday, the British pound and the euro pared some of last week's losses against the dollar.

OUTLOOK

The market was looking ahead to monthly reports from OPEC on Tuesday and the International Energy Agency on Wednesday.

Traders were keeping an eye on ongoing geopolitical worries in the Middle East. Syrian rebels broke through government lines to ease a siege of their positions in the strategic central city of Homs despite coming under fierce aerial bombardment, opposition campaigners said.

Syria is not key to the oil market, but investors have long worried the unrest may spread to other major oil exporters.

Tensions in the Middle East over Iran's controversial nuclear programme have kept Brent futures above $100 through most of 2012 and this year.

(Additional reporting by Manash Goswami in Singapore; Editing by Helen Massy-Beresford)

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*Arab League clears member states to arm Syria rebels. LONDON, March 11- Oil fell towards $110 on Monday as the latest data from China revived worries over the economic recovery in the world's second-biggest oil consumer.

   
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