* 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
(Adds quotes, updates prices)
By Florence Tan
SINGAPORE, Oct 8 (Reuters) - Brent crude slipped below $111per barrel on Monday, dropping for a second straight session onconcern that a fragile global economy could curb oil demand, butsupply worries stemming from tension in the Middle East may helpcheck 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 hit a low of $110.86 and wasdown 82 cents to $111.20 a barrel by 0702 GMT. U.S. Novembercrude fell 90 cents to $88.98 after slipping to a low of$88.71.
"It's reflective of the weak market conditions at themoment," Natalie Rampono, a commodity strategist with ANZ inMelbourne said, adding that fundamentals were looking weaker,particularly with U.S. shale oil output rising significantly.
"The oil price has gone ahead of itself in the last fewmonths," she said.
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Investors have turned more cautious as hedge funds and otherlarge speculators cut their bets on higher oil prices for thesecond straight week in the seven days to Oct. 2, the U.S.Commodity Futures Trading Commission said.
"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.
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 its nuclear programpersists.
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.
The spotlight will be back on the euro zone this week asGerman Chancellor Angela Merkel visits Greece while the world'sfinance ministers meet in Luxembourg.
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.
(Additional reporting by Manolo Serapio Jr; Editing by HimaniSarkar and Clarence Fernandez)
Keywords: MARKETS OIL/