Wires

UPDATE 9-Oil dips on growth concerns; Middle East fears support

* 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

(Recasts, updates prices, add detail paragraphs 1-3,6-7,10-15)

By Robert Gibbons

NEW YORK, Oct 8 (Reuters) - Oil prices eased on Monday inchoppy trading on concerns that slower economic growth in Chinaand the debt crisis in Europe will curb demand for petroleum,while the potential for Middle East turmoil to disrupt supplieslimited losses.

Brent crude especially received support as Turkey and Syriaexchanged artillery fire for a sixth day, keeping in focus thethreat of a wider conflict in the region.

Brent prices moved higher in post-settlement trading as theseesaw price trajectory continued.

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.

The euro retreated from a two-week high against the dollarand yen as uncertainty about Spain persisted after euro zoneministers said the country did not yet need a bailout.

The dollar was broadly stronger and a stronger U.S.currency can put pressure on dollar-denominated commodities likeoil.

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

"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 edged down 20 cents to settleat $111.82 a barrel, recovering after falling to a session lowof $110.54. Prices reached $112.24 during the session, puttingprices above the 200-day moving average of $112.15, a technicallevel closely monitored by chart-watching traders.

U.S. November crude fell a second straight session,dropping 55 cents to settle at $89.33 a barrel, leaving pricesback below the 100-day moving average of $89.88, which also wasFriday's settlement.

Brent's premium to U.S. crude increased to$22.49, and reached $22.92 intraday on Monday. Middle Eastconflicts and delays in the October loading of North Sea Fortiescargoes have helped push Brent's premium to its highest sinceOctober 2011.

Total crude trading volume was light, with Brent turnover 16percent below its 30-day average and U.S. dealings 27 percentbelow their 30-day average.

U.S. RBOB gasoline fell 2 percent, dropping nearly 6 centsto settle at $2.8931 a gallon. The trading range from $2.8890and $2.9729 kept gasoline between the 100-day moving average at$2.8780 and the 200-day moving average of $2.9729.

U.S. heating oil , the benchmark distillate futurescontract, eased 1.16 cents to settle at $3.1443 a gallon.

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 the "worst-casescenarios" were now playing out in Syria. Gul said Turkey wouldto do everything necessary to protect itself, while its armyfired back for a sixth day after a shell fired from Syria flewover 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 and Marguerita Choy)

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

Keywords: MARKETS OIL/