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UPDATE 7-Oil rises above $113 on Syria-Turkey tension

* Escalating Turkey-Syria conflict poses supply risk

* Saudi oil minister wants to see Brent fall towards $100

* IMF cuts global growth forecast

* Iraq's oil exports up, output may double by 2020

(Updates prices) By Peg Mackey

LONDON, Oct 9 (Reuters) - Oil rose over $113 a barrel onTuesday after two days of losses, with tensions in the MiddleEast and the risk of supply disruptions outweighing concernsabout sluggish global demand.

Turkish President Abdullah Gul said on Monday the"worst-case scenarios" between his country and Syria were nowplaying out, fuelling concerns that the 18-month-old conflict inSyria may spread to other countries in the region.

"It's a political risk premium coming into the market now,not really supported by fundamental data," said Andy Sommer, oilmarket analyst with EGL in Switzerland.

"If you look at the demand side, prices should be a bitlower than they are currently. But the risk, or fear, that thisTurkey-Syria conflict might spread further in the Arab world isincreasing that risk premium."

Brent futures rose $1.35 to $113.17 by 1355 GMT.U.S. crude climbed $1.06 to $90.39, also rebounding aftertwo consecutive sessions of declines.

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 border.

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

Concerns over Syria have eclipsed Iran's long-running rowwith the West over Tehran's disputed nuclear programme that hasled to sanctions on Iranian oil shipments.

OPEC's biggest producer, Saudi Arabia, has raised output toa 30-year high of 10 million barrels per day (bpd) - helping tocompensate for the cut in exports from Iran.

And Oil Minister Ali al-Naimi said on Tuesday Saudi Arabiawould continue to pump at around that rate this month. Theveteran oil minister said oil prices were still too high andRiyadh would like it to fall towards $100.

More supply is also on the way from neighbouring Iraq,OPEC's second-biggest producer after Saudi. Exports this monthare expected to rise above 2.8 million bpd, the highest indecades, and output is on course to more than double by 2020.

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

A poor outlook for the global economy is keeping a lid onoil price gains.

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".

(Additional reporting by Alice Baghdjian in London and RamyaVenugopal in Singapore; Editing by William Hardy)

((peg.mackey@thomsonreuters.com)(+44 207 542 7714))

Keywords: MARKETS OIL/