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Brent slips below $112 as weak economy offsets supply worries

* World Bank says China economic slowdown could get worse

* Germany industrial orders fall in August

* US unemployment rate drops to lowest since Obama tookoffice

* Turkey retaliates against Syria bombing for 5th day By Florence Tan

SINGAPORE, Oct 8 (Reuters) - Brent crude slipped below $112per barrel on Monday, dropping for a second straight session onconcerns a fragile global economy could curb oil demand, butsupply worries stemming from tensions in the Middle East mayhelp check losses.

The World Bank cut on Monday its economic growth forecastsfor the East Asia and Pacific region, home to two of the world'slargest oil consumers, and said there was a risk the slowdown inChina could get worse and last longer than expected.

Concerns about Europe persisted with the region's largesteconomy Germany posting a drop in industrial orders in August,while a firm dollar after a surprise drop in the U.S. joblessrate also curbed oil prices. A stronger dollar makes commoditiespriced in the greenback more expensive for holders of othercurrencies.

Brent November crude fell 34 cents to $111.68 abarrel by 0302 GMT after a 0.33 percent decline last week. U.S.November crude fell 42 cents to $89.46.

"Oil is still finely balanced. On the one hand, we stillhave effects of a slowing economy and what that means for oildemand. On the other hand, there is oil supply risk at themoment," said Michael Creed, an economist at National AustraliaBank.

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Oil prices continued to draw support from worries aboutpotential threats to supply as the Syrian civil conflict dragson and as Iran's dispute with the West over Tehran's nuclearprogram persists.

Turkey returned fire for a fifth day against incomingbombardment from northern Syria. The exchanges are the mostserious cross-border violence in Syria's conflict and highlighthow the crisis could destabilise the region.

The United States and Europe are looking at more economicsanctions to pressure Iran to abandon its nuclear programme.

Middle East conflicts and delays in the October loading ofNorth Sea Forties cargoes have pushed Brent's premium

to U.S. crude to its highest since October 2011.

"As those supplies come back online, we should start to seeit narrowing," Creed said, referring to the Forties delay.

Investors are also turning more cautious as hedge funds andother large speculators cut their bets on higher oil prices forthe second straight week in the seven days to Oct. 2, the U.S.Commodity Futures Trading Commission said.

The closely watched presidential election in Venezuela cameto an end with socialist President Hugo Chavez being re-elected,quashing the opposition's best chance at unseating him in 14years and cementing himself as a dominant figure in modern LatinAmerican history.

(Editing by Himani Sarkar)

((Florence.Tan@thomsonreuters.com)(+65 6870 3497)(ReutersMessaging: florence.tan.thomsonreuters.com@reuters.net))

Keywords: MARKETS OIL/