Wires

UPDATE 2-Brent rises towards $113 on Syria-Turkey tensions

* Escalating Turkey-Syria conflict threatens supplies

* IMF cuts global growth forecast, sees soft landing inChina

* Coming up: ECB chief Mario Draghi speaks at 0730 GMT(Updates prices) By Ramya Venugopal

SINGAPORE, Oct 9 (Reuters) - Brent crude futures rosetowards $113 a barrel on Tuesday after two days of losses, withsupply fears due to escalating tensions in the Middle Eastprevailing over a sluggish outlook for global demand.

Turkish President Abdullah Gul said on Monday that the worstcase scenarios between his country and Syria are now playingout, fuelling concerns that the 18-month old conflict in Syriamay spread to other countries in the region.

"Right now the market is concerned about the continuingconflict between Syria and Turkey, and the worry is that if itescalates, it may disrupt supplies," said Ker Chung Yang, seniorinvestment analyst at Phillip Futures in Singapore.

Front-month Brent futures had risen 89 cents to$112.71 per barrel by 0618 GMT. U.S. crude gained 85cents to $90.18, also rebounding after two consecutive sessionsof declines.

Brent's premium to U.S. crude jumped to $22.5per barrel, the most since Oct. 20 last year.

Tensions between Syria and Turkey are at their worst sinceMarch after cross-border firing accidentally killed some Turkishcivilians last week, causing Istanbul to boost its militarypresence along the Syrian border

This could threaten oil production in the north of Iraq andits transport to the West, analysts said.

Turkey's armed forces have been responding in kind togunfire and shelling is spilling across from the south, whereSyrian President Bashar al-Assad's forces have been battlingrebels who control swathes of territory.

Concerns over the situation have eclipsed Iran'slong-running row with the West over Tehran's disputed nuclearprogramme that has led to sanctions on Iranian oil shipments.

But a poor outlook for the global economy is keeping a lidon oil price gains.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 24-Hour Brent chart: 24-hour U.S. crude chart: IMF revises growth forecasts: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> IMF CUTS FORECAST

The International Monetary Fund cut its global growthforecast for the second time since April and warned U.S. andEuropean policymakers that failure to fix their economic illswould prolong the slump.

For 2012, the IMF now expects global output to grow just 3.3percent, down from its July estimate of 3.5 percent, making itthe slowest year of growth since 2009.

It predicted only a modest pickup next year to 3.6 percent,below its July estimate of 3.9 percent.

Growth in China's economy, the world's second-biggest, willslow to 7.8 percent this year from 9.2 percent in 2011, the IMFsaid, warning of risks to emerging Asia if the euro zone crisisworsens and the United States does not avoid its "fiscal cliff".

Looking ahead, investors are awaiting the outcome of theEuropean Union's Economic and Financial Affairs council inLuxembourg later in the day for any cues on Greece's troublesand the likelihood of a Spanish request for a bailout.

"The headlines will drive the market over the next 24 hoursand help determine if the recent risk-on sentiment continues,"said Ben Taylor, a sales trader at CMC Markets.

(Editing by Manolo Serapio Jr. and Joseph Radford)

((ramya.venugopal@thomsonreuters.com)(+65 6870 3826)(ReutersMessaging: ramya.venugopal.thomsonreuters.com@reuters.net))

Keywords: MARKETS OIL/