UPDATE 8-Oil slips on China growth warning, Middle East supports

* World Bank says China economic slowdown may worsen

* Turkey retaliates again after mortar fire from Syria

* Coming up: API oil data 4:30 p.m. EDT Wednesday

(Updates prices, adds detail paragraphs 8-9, 11-15)

By Robert Gibbons

NEW YORK, Oct 8 (Reuters) - Oil prices eased on Monday onconcerns that slower economic growth in China and the debtcrisis in Europe will curb demand for petroleum, while thepotential for Middle East turmoil to disrupt supplies limitedlosses.

Crude futures encountered pressure when the World Bank cutits economic growth forecasts for East Asia and the Pacificregion and said there was a risk the slowdown in China, theglobal No. 2 oil consumer, could be deeper and more prolongedthan expected by many analysts.

China's economic growth and demand for petroleum have beenkey supports for oil prices since global energy demand was hitby recession after the financial crisis in 2008.

Worries about Spain and Europe's debt crisis continued evenas euro zone officials gathered in Luxembourg to launch theregion's bailout fund. The euro retreated from a two-week peakagainst the dollar and yen.

The concerns about Asia weighed on global and U.S. equities.

More exchanges of fire between Turkey and Syria on Mondayand better-than-expected German export data helped limit oilmarket losses, analysts and brokers said.

"The situation between Turkey and Syria and some Germanexport data, that was unexpectedly supportive, helped pullprices off lows hit because of concerns about China's slowingand Europe's debt crisis," said Phil Flynn, analyst at PriceFutures Group in Chicago.

Brent November crude slipped 24 cents to $111.78 abarrel by 1:43 a.m. EDT (1743 GMT), recovering after falling toa session low of $110.54. Monday's $112.24 peak briefly putprices above the 200-day moving average of $112.15, a technicallevel closely monitored by chart-watching traders.

U.S. November crude was down 47 cents at $89.41 abarrel, having slipped as low as $88.21. U.S. crude needs asettlement in the black to put prices back above its 100-daymoving average of $89.88, which also was Friday's settlement.

Brent's premium to U.S. crude neared $23 abarrel intraday on Monday. Middle East conflicts and delays inthe October loading of North Sea Forties cargoes have helpedpush Brent's premium to its highest since October 2011.

Total crude trading volume was light, with Brent turnover 29percent below its 30-day average and U.S. dealings 51 percentbelow their 30-day average.

U.S. RBOB gasoline fell more than 1 percent, while U.S.heating oil, the benchmark distillate futures contract, easedless than half a percent.

Monday's Columbus Day holiday for U.S. federal workers willdelay weekly oil inventory reports this week. The AmericanPetroleum Institute will release its data at 4:30 p.m. EDT (2030GMT) on Wednesday, while U.S. Energy Information Administrationdata will arrive at 11 a.m. EDT on Thursday.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ FACTBOX-Syrian death toll mounts, refugee wave grows: Graphic - Oil in euros: Graphics - Israel/Iran: For a 24-hr Brent crude chart analysis ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> MIDDLE EAST TURMOIL

Turkish President Abdullah Gul said on Monday the"worst-case scenarios" were now playing out in Syria. Gul saidTurkey would to do everything necessary to protect itself, whileits army fired back for a sixth day after a shell fired fromSyria flew over the border.

Syrian forces advanced into the rebel-held Khalidiyadistrict in the central city of Homs for the first time inmonths, rebels in the neighborhood said. Forces fighting rebelsseeking to topple President Bashar al-Assad have been bombarding12 districts of the besieged Homs for four days.

"The ongoing shelling of Turkey by Syria is also fuellingconcerns about the conflict in Syria spreading to theneighboring 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.

Iran's dispute with Israel and the West over Tehran'snuclear program also continues to limit oil price losses.

Iran on Monday derided Israel's air defenses as feeble,citing a drone incursion into Israeli airspace, but Tehran didnot say it had sent the aircraft shot down by the Israelis atthe weekend.

Iran also accused Israel and others of masterminding what itsaid was a cyber attack on communication networks on Iranianoffshore oil and gas platforms in the past few weeks.

(Additional reporting by Alice Baghdjian and ChristopherJohnson in London and Florence Tan and Manolo Serapio Jr inSingapore; Editing by Bob Burgdorfer)

((robert.gibbons@thomsonreuters.com)(+1 646 223 6059)(ReutersMessaging: robert.gibbons.reuters.com@reuters.net))

Keywords: MARKETS OIL/