Brent slips towards $111 as growth worries persist

* Factories struggle despite stimulus measures

* U.S. election, fiscal concerns in focus

* Simmering tensions in Middle East offer support

* Coming up: EIA petroleum status report at 1430 GMT

By Ramya Venugopal

SINGAPORE, Oct 3 (Reuters) - Brent crude futures slippedtowards $111 per barrel on Wednesday, hurt by persistentconcerns on global growth and oil demand, while Europe'sfestering debt crisis added to uncertainty.

Simmering tensions in the Middle East kept losses in check,however, with investors increasingly convinced that a disputeover Iran's nuclear programme will drag on.

"It's hard to get bullish when the numbers are so bad,especially in China and the euro zone," said Tony Nunan, an oilrisk manager at Mitsubishi Corp, referring to weak manufacturingdata released this week.

"But prices are not going to fall that far, as the situationbetween Iran and Israel will keep the heat under the marketuntil the end of the year."

Brent November crude futures had fallen 36 cents to$111.21 a barrel by 0139 GMT. They ended Tuesday below twocritical technical levels -- the 50-day moving average at$112.06 and the 200-day moving average at $112.09.

U.S. November crude shed 33 cents to settle at $91.57a barrel. It could drop below $89 per barrel after failing tobreak through key resistance at $93.33.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Brent 24-hr chart analysis: WTI 24-hour chart analysis: U.S. euro zone, China PMI: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> GROWING PAINS

Concerns on global growth intensified this week, after araft of manufacturing data showed that companies are yet tobenefit from stimulus measures by central banks and governments.

While manufacturing in the United States grew unexpectedlyin September, the euro zone's factories suffered their worstquarter in nearly three years and China appeared to have loststeam.

Adding to investor worries are next month's elections in theUnited States and the likelihood of a sharp cut in the country'sbudget deficit after the polls, which could hurt a nascentrecovery in the world's biggest oil consumer.

"(Investors) have to contemplate whether such policydevelopments will soon result in genuine broader macro healing,"Bank of America-Merrill Lynch analysts said in a report.

"We are less sanguine, especially as focus turns to apotentially negative interaction between the oncoming U.S.fiscal cliff and the peak of the election season."

UNDER THE SPOTLIGHT

Supply concerns remain heightened as an ongoing dispute overIran's nuclear programme came back under the spotlight afterlast week's speeches by the heads of states of Iran, Israel andthe U.S. at the United Nations General Assembly in New York.

Sanctions by the U.S. and the European Union on Iranian oilshipments have left the Middle Eastern nation's economy reeling,plunging the currency to a record low on Tuesday.

Investors are also closely monitoring elections in OPECmember Venezuela, where incumbent President Hugo Chavez isfacing a strong challenge from opposition Candidate HenriqueCapriles.

Venezuela's crude oil sales remain critical for the heavilyindebted nation's finances.

Also supporting U.S. crude, data from the American PetroleumInstitute showed that inventories rose less than expected,adding 462,000 barrels last week, compared with analysts'expectations for a build of 1.5 million barrels.

The U.S. Energy Information Administration (EIA) willrelease its weekly estimates later on Wednesday at 1430 GMT.

(Additional reporting by Wang Tao; Editing by Joseph Radford)

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Keywords: MARKETS OIL/