UPDATE 4-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 prices, adds comment; paragraphs 6, 8-9, 13-14)

By Alice Baghdjian

LONDON, Oct 8 (Reuters) - Brent crude oil fell below $111per barrel on Monday on concerns slower economic growth wouldcurb oil demand, but supply worries stemming from tension in theMiddle East helped check losses.

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

China has been a prop for the world economy, and globalenergy demand, at a time when many developed industrialisednations have seen slower growth or recession.

Concerns about Europe persist with the region's largesteconomy, Germany, seeing a fall in industrial orders, while afirm dollar after a surprise drop in the U.S. jobless rate alsocurbed 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 $110.95by 1040 GMT. U.S. crude fell $1.67 to a low of $88.21.

"The World Bank's pessimistic outlook for East Asianeconomies and warning that China's economic slump coulddeteriorate further ... had a hand in pushing prices lower,"said David Wech, head of market analysis at Vienna-basedconsultancy JBC Energy.

The World Bank said the new forecasts marked the slowestgrowth in the Asia Pacific region since 2001, even slower thanthe peak of the financial crisis in 2009.

"It's probably China that holds the keys to all this," saidChristopher Bellew, a broker at Jefferies Bache. "This certainlycould have caused the retrace downwards today."

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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 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 continued to draw support from worries about potentialthreats to supply as the Syrian civil conflict drags on and asIran's dispute with the West over its nuclear program 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 ongoing shelling of Turkey by Syria is also fuellingconcerns about the conflict in Syria spreading to theneighbouring country," said Carsten Fritsch, oil analyst atCommerzbank in Frankfurt.

"If this were to happen, oil production in the North of Iraqwould be at risk, since the oil is transported to the West viapipelines through Turkey," he said.

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.

(Additional reporting by Christopher Johnson in London, andFlorence Tan and Manolo Serapio Jr in Singapore; editing byWilliam Hardy)

((christopher.johnson@thomsonreuters.com)(+44 207 5426056)(Reuters Messaging:christopher.johnson.reuters.com@reuters.net))

Keywords: MARKETS OIL/