(Corrects paragraph 3 to say Brent on Tues hit highest sinceSept. 17, not Sept. 18)
* Weak economic outlook, stronger dollar depress oil * NATO says plans in place to defend Turkey from Syria * U.S. crude stockpiles forecast to rise 1 mln bbls -poll * Coming Up: API weekly oil inventories data; 2030 GMT By Florence Tan
SINGAPORE, Oct 10 (Reuters) - Brent crude slipped near $114on Wednesday after a jump of 2 percent the previous day, with acloudy economic outlook offsetting fears about disruptions toMiddle East oil supply as a conflict between Turkey and Syriaescalated.
A stronger U.S. dollar, as investors shied away from risk onconcerns about a slowdown in global growth, also weighed on oilprices, making the commodity more costly for holders of othercurrencies.
Brent crude had slipped 37 cents to $114.13 a barrelby 0502 GMT, after a rise of 2.4 percent on Tuesday to itshighest since Sept. 18. U.S. crude fell 35 cents to$92.04 a barrel. The dollar index rose 0.13 percent.
"There's definitely a little bit of profit-taking after sucha strong session," said Ben Le Brun, a market analyst atOptionsXpress in Sydney.
"The rising tension between Turkey and Syria is underpinningoil prices."
The two neighbours have repeatedly exchanged fire since lastweek after Syrian shells struck a border town in Turkey killingfive civilians.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic on WTI-Brent spread Graphic of 24-hr chart Brent analysis ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> NATO DEFENCE PLANS
NATO said it had plans in place to defend Turkey againstattack from Syria, and would aim to provide assistance if Ankaraasked for it.
"The geopolitical risk premium was boosted from mountingtensions between Turkey and Syria," ANZ analysts said in a note.
"This has increased supply disruption concerns, particularlyif the Syrian conflict begins to hamper oil production innorthern Iraq."
Tension in the Middle East and delays to North Sea Fortiesloadings pushed Brent's premium to U.S. crude to itswidest in nearly a year at $23.13 a barrel on Tuesday.
Reuters market analyst Wang Tao said the spread may havepeaked in a support zone between $22.79 and $24.34 per barreland could narrow towards $16 over the next four weeks.
But the impact of supply concerns on prices was mitigated asinvestors this week turned to safe havens after the IMF said theglobal economic slowdown was worsening and cut its growthforecasts for the second time since April.
It warned U.S. and European policymakers that failure to fixtheir economic ills would prolong the slump.
"Oil has been falling as investors weigh supply risksagainst weaker demand," Le Brun said. "A lot of growthexpectations are being revised down, especially in China."
China's annual economic growth probably slowed for a seventhstraight quarter in the July-September period to its weakestlevel since the depths of the global financial crisis, a Reuterspoll showed, reinforcing the case for further policy stimulus.
Investors will also scour data on weekly oil inventoriesfrom the United States due to be released in the next two days.
Analysts polled by Reuters forecast a 1-million-barrel buildin crude stockpiles for the week to Oct. 5.
The API report will be released later on Wednesday and theEIA data on Thursday, delayed a day by the Columbus Day holiday.
(Reporting by Florence Tan; Editing by Clarence Fernandez)
Keywords: MARKETS OIL/