UPDATE 4-Oil falls as economic data dims demand outlook

* China, Europe services PMI disappoint

* Simmering tensions in Middle East offer support

* Coming up: EIA petroleum status report; 1430 GMT

(Updates prices) By Simon Falush

LONDON, Oct 3 (Reuters) - Crude oil prices fell on Wednesday, as weak data from Europe and China dimmed the outlook for demand, while Europe's festering debt crisis added to the gloom.

Brent November crude futures had fallen 96 cents to $110.61 a barrel by 1000 GMT. They ended Tuesday below two critical technical levels -- the 50-day moving average at $112.06 and the 200-day moving average at $112.09.

U.S. November crude shed 56 cents to $91.33 a barrel.

China's official purchasing managers' index for the services sector fell to 53.7 in September from 56.3 in August as growth in the manufacturing industry stabilised at a slower pace.

In Europe dwindling new orders and faster layoffs marked a worsening decline for euro zone companies last month, according to business surveys that dent hopes the economy will return to growth before 2013.

Wednesday's purchasing managers indexes (PMIs) suggested it was almost inevitable the euro zone returned to recession in the third quarter.

"There's little to be cheerful about. There's worry about whether Spain will ask for a bailout or not and there's major uncertainty around China," said Filip Petersson, analyst at SEB in Stockholm. "It's difficult to be bullish at the moment."

Oil prices are still more than $20 a barrel higher than they were in June as fears about conflict in the Middle East have kept concern about supply disruption simmering.

Investors were increasingly convinced that a dispute over Iran's nuclear programme will drag on.

"Prices are not going to fall that far, as the situation between Iran and Israel will keep the heat under the market until the end of the year," Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo said.

Data from the American Petroleum Institute showed that inventories rose less than expected last week, adding 462,000 barrels, against expectations for a build of 1.5 million barrels.

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

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

Concerns about global growth were already heightened after a raft of manufacturing data showed companies have yet to benefit from stimulus measures by central banks and governments.

While manufacturing in the United States grew unexpectedly in September, the euro zone's factories suffered their worst quarter in nearly three years and China appeared to have lost steam.

The twists and turns in the European debt crisis are also keeping investors on edge.

Spanish Prime Minister Mariano Rajoy said on Tuesday a request for European aid was not imminent, while Greece held a new round of talks with foreign lenders to bridge differences over disputed austerity cuts.

The impact of the crisis is also being felt in the oil business, weakening demand, analysts said.

"The independent European refiners have faced a sharp increase in their financing costs, and a general lack of credit availability, as European banks have cut back on their lending, particularly to companies in the commodity space," Goldman Sachs said in a report.

"Consequently, European refiners have kept their inventories lean and their runs low as they now require higher refining margins to cover higher funding costs."

(Reporting by Simon Falush; Editing by Alison Birrane)


Messaging: simon.falush.reuters.com@reuters.net))

Keywords: MARKETS OIL/