* Gaza fighting subsides with Hamas backing 24-hour truce
* U.S., EU prepare more sanctions on Russia over Ukraine
* U.S. allowed Kurdish oil cargo to unload off Texas on
By Florence Tan and Theodora D'cruz
SINGAPORE, July 28 Brent crude slipped below
$108 a barrel on Monday as fighting between Israel and Hamas
Islamist militants subsided in Gaza, but some analysts said
falls may be limited.
Geopolitical tensions in the Middle East eased for now after
Hamas said it backed a 24-hour humanitarian truce. U.S.
President Barack Obama had called for a ceasefire but there was
no sign of any comprehensive deal to end fighting with Israel.
September Brent crude fell 50 cents to $107.89 a
barrel by 0321 GMT after a 1 percent gain last week.
U.S. crude futures for September delivery dropped 52
cents to $101.57 a barrel after ending last week 1 percent
"Oil markets are going down because of a ceasefire for 24
hours in Israel and Gaza," said Ken Hasegawa, a commodity sales
manager at Newedge Japan. "This has definitely put some pressure
Hasegawa said oil prices were expected to stay in a range of
$105-$110 for Brent and $100-$105 for West Texas Intermediate.
Oil remained underpinned by tension in hotspots such as
Libya and eastern Ukraine despite ample supply of crude and oil
"I would expect to see some buying support around these
levels it is trading at right now," said Ben Le Brun, a markets
analyst at OptionsXpress in Sydney.
"We are still keeping a very, very close eye on what's
happening in the Middle East at the moment, so that should say
oil prices are quite well supported."
Libyan Special Forces and Islamist militants clashed over
the weekend, resulting in at least 36 deaths in Libya's eastern
city of Benghazi.
The United States and the European Union prepared more
economic sanctions on Russia over the Ukraine conflict, where
fighting has intensified in the east.
Global markets may also see more oil exported out of Iraqi
Kurdistan after the U.S. Coast Guard cleared a tanker to unload
a cargo off Texas on Sunday. A State Department official
signalled that Washington would not intervene to block delivery
of the controversial crude.
Investors are gearing up for more economic data from the
United States later this week, including second-quarter GDP
figures, to gauge the health of the world's largest economy.
"There's going to be very strong economic data coming out of
the U.S. and perhaps traders are doing a little bit of
position-squaring before the data comes out," Le Brun said.
(Reporting by Florence Tan; Editing by Alan Raybould)