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UPDATE 6-Brent oil slips below $109 as U.S. oil inventories hit record

* U.S. oil stocks hit record high - EIA

* Cushing stocks down 0.8 million barrels - EIA

* Ukraine says 'Easter truce' is over

* Euro zone private sector in strong start to Q2

* Survey shows China manufacturing decline slows

(Adds EIA data)

LONDON, April 23 (Reuters) - Brent oil fell below $109 on Wednesday after weekly data showed U.S. crude inventories hit a record high, though prices found some support from the unfolding crisis in Ukraine.

U.S. crude oil stocks jumped 3.5 million barrels to 397.6 million barrels last week, the U.S. Energy Information Administration said. That is the highest level since records began in 1982, and a far bigger rise than predicted by analysts.

At the same time, stocks at the Cushing, Oklahoma delivery point for the U.S. crude oil contract fell by 788,000 barrels to their lowest in almost five years.

Brent crude for June delivery reversed slight gains after the EIA data to trade 29 cents lower at $108.98 by 1442 GMT. It had ended 68 cents, or 0.6 percent, lower on Tuesday in its biggest one-day drop in two weeks.

U.S. crude for June delivery fell 36 cents to $101.39 a barrel, after losing more than 2 percent during the previous session as the May contract expired, its steepest decline in nearly four months.

The slide in U.S. crude widened its discount to Brent to the biggest in a month. The U.S. contract recovered slightly, however, after the spread between the two benchmarks held its 200-day moving average of $8.18 a barrel. The moving average is a key technical indicator watched by traders.

Last week's peace deal in Ukraine formally ended on Wednesday as the government said an "Easter truce" was over, vowing to eliminate pro-Russian armed groups in the east of the country.

The crisis in Ukraine has supported oil prices due to fears Western powers may increase sanctions against Russia, the world's second-largest crude exporter.

China, the world's second-biggest oil consumer, reported a fourth straight monthly downturn in factory activity, but analysts also saw initial signs of stability due to government efforts to underpin growth.

"China is slowing down and that's a concern, but people don't expect it to fall off a cliff," said Tony Nunan, an oil risk manager at Mitsubishi Corp.

"Geopolitical concerns over Ukraine, unfinished issues such as Syria and Libya, are keeping prices supported."

The euro zone's private sector has started the second quarter on its strongest footing in nearly three years, surveys showed on Wednesday, led by growth in Germany this month after a slight slowdown in March.

Investors are also keeping an eye on Libya's progress in ramping up exports. The North African nation's oil production is around 220,000 barrels a day as several oilfields remain closed due to protests, a spokesman for state-run National Oil Corp said.

(Additional reporting by Manash Goswami in Singapore; editing by Dale Hudson and Keiron Henderson)