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UPDATE 2-Brent slips toward $110 as tensions over Ukraine crisis ease

* Russia's Putin orders troops in military exercise back to base

* U.S., EU tell Russia to pull troops from Crimea or face sanctions

* U.S. crude stockpiles likely rose 1 mln bbls last week -poll

(Recasts, adds quotes, updates prices)

SINGAPORE, March 4 (Reuters) - Oil fell as much as a $1 on Tuesday, with Brent slipping towards $110 a barrel, after President Vladimir Putin recalled troops in military exercises in western Russia near its borders with Ukraine.

Russia invaded Ukraine's autonomous Crimea region at the weekend, and the United States and the European Union have threatened sanctions if Moscow does not withdraw its troops.

Putin's order raised investors' hopes for a peaceful resolution between the two, with Asian and Russian equities turning higher and commodities such as oil and gold falling. There was no word, however, on movement of Russian forces that have effectively occupied much of Crimea.

April Brent crude hit a low of $110.12 a barrel and was at $110.56, down 64 cents by 0737 GMT. It closed the previous session at its highest since Dec. 27.

U.S. crude for April delivery slipped from a 5-1/2 month high to as low as $103.91 a barrel. The contract was at $104.14, down 78 cents.

"The Russian side seems to be adopting a dovish tone," Phillips Future analyst Tan Chee Tat said.

"If war were to erupt, it will have a deep impact on Russia's finances."

Russia paid a heavy financial price on Monday for its military intervention in Ukraine, with stocks, bonds and the rouble plunging as investors dumped riskier assets like stocks in favour of commodities like gold and oil.

Russia, Europe's biggest gas supplier, exports around a third of its gas through Ukraine. Tensions between the two countries raised fears of energy supply disruption in the region.

"It probably isn't in anybody's interest to stop the Russian gas flow to the rest of Europe but it's possible something that might be used as a bargaining lever by either side," said Ric Spooner, chief analyst at CMC Markets in Sydney.

"It would only take threats of that to see more risk premiums build into oil price."

A mild winter and improved infrastructure mean Europe and Ukraine are less reliant on Russian natural gas than in past years, however, easing worries that the escalating crisis in Ukraine could hurt supplies.

Societe Generale's oil analyst Michael Wittner said the most significant impact from this crisis could be a worsening of the relationship between Russia and the West, resulting in lower levels of cooperation on other issues such as Iran and Syria.

"The geopolitical risk premium from these countries has fallen dramatically since last summer, but could increase again if the nuclear negotiations flounder in Iran and if the situation deteriorates further in Syria," he said in a note.

Investors are also eyeing weekly U.S. oil inventories data to assess demand in the world's largest oil consumer.

U.S. commercial crude oil inventories likely rose by 1 million barrels on average last week, while stockpiles of refined oil products were expected to have dropped, a preliminary Reuters poll of five analysts showed.

The API will release its data on Tuesday at 4:30 p.m. EST (2130 GMT). The EIA will publish its data on Wednesday at 10:30 a.m. EST (1530 GMT).

(Editing by Tom Hogue and Sunil Nair)