* U.S. announces new sanctions against Russia over Ukraine
* Force majeure lifted at Libyan oil port of Zueitina
* Brent-WTI gap narrows but still near $8 a barrel
(Updates Brent and U.S. crude prices in paragraph 5)
NEW YORK, April 28 (Reuters) - Brent crude oil prices fell almost 1 percent on Monday, extending earlier losses, on expectations of greater supplies as OPEC producer Libya prepares to reopen a second port, and as traders unwound the spread versus U.S. crude.
Dealers said Brent prices were pressured by news on Monday that Libya, a major producer, lifted force majeure at the eastern oil port of Zueitina, paving the way to restart exports at a second port after a deal with rebels to unblock major terminals.
The market also digested news that the United States slapped a third round of sanctions on Russian individuals and companies to try to stop President Vladimir Putin from fomenting rebellion in eastern Ukraine.
Among the seven powerful Russians sanctioned was Igor Sechin, head of state energy giant Rosneft.
June Brent fell $1.15 to an intraday low of $108.43 per barrel midmorning in New York, shortly after the news. Some traders said the list of sanctions may have been milder than some had expected, easing concerns about any potential impact on supplies.
"It could be that they didn't target energy companies or people, and they thought they were going to," said Mark Waggoner, president, Excel Futures in Oregon.
Prices were down 92 cents, or 0.84 percent, at $108.66 at 12:22 p.m. EDT (1722 GMT). Brent had settled down 75 cents on Friday.
U.S. crude narrowed the gap with Brent <CL-LCO1=R> to around $8.06 a barrel after it stretched as wide as $9.28 on Friday.
Recovering from earlier losses, U.S. crude for June delivery was steady at $100.59. Earlier in the session, it fell to $100.38, its lowest since April 7.
President Barack Obama has made it clear the United States will slap sanctions on key sectors of the Russian economy, including energy, if Russia launches a military move deeper into Ukraine.
In eastern Ukraine, pro-Moscow rebels seized public buildings in another town. Interfax news agency reported the mayor of a major eastern city, Kharkiv, had been shot and was undergoing an operation.
Long-term concerns over mounting tensions between Russia and Ukraine will continue to buoy Brent prices, analysts said.
"The Brent price is likely to find continued support from the uncertainty over the way the situation will play out in east Ukraine and from the possibility of delivery outages," said Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt.
Russia's oil pipeline monopoly Transneft has said it is worried Ukraine may take control of its oil product pipeline to Hungary.
Analysts blamed record high crude inventories in the United States for depressing U.S. crude prices despite a rise in refinery utilisation rates.
(Additional reporting by Christopher Johnson in London, Florence Tan in Singapore and Cezary Podkul in New York. Editing by Dale Hudson, Jason Neely and Peter Galloway)