UPDATE 7-Oil prices fall on profit taking, Ukraine attack on rebels

* New Ukraine leader says no talks with "terrorists"

* Libya oil output 160,000 bpd vs 1.4 million pre-uprising

* Libya rebels don't recognise new govt, blockade continues

* U.S. gasoline falls after Monday's Memorial Day holiday

(Updates prices in paragraphs 3, 4)

NEW YORK, May 27 (Reuters) - Global oil prices edged lower on Tuesday as traders took profit after a long holiday weekend and analysts felt confident there would be no disruption to Russian energy supplies after Ukraine elected a new president.

Analysts said they expect any price weakening to be brief as Libyan oil exports fell further after operations at a port was disrupted by more protests and as conflict in the eastern Ukrainian city of Donetsk could raise the risk premium.

Brent was down 41 cents at $109.91 a barrel by 1:08 p.m. EDT (1708 GMT). The contract touched an intraday peak of $111.04 a barrel on Thursday, its highest in more than two and a half months.

U.S. light crude oil was down 47 cents at $103.88 a barrel. U.S. gasoline fell nearly 3 cents to $2.9940 a gallon as traders sold long positions taken before Monday's holiday in the U.S. for Memorial Day, which marks the start of the summer driving season.

"We're seeing pressure on gasoline as we made it through the Memorial Day holiday," said Andy Lipow, president of Lipow Oil Associates in Houston. "We've made it past the Ukrainian elections, and the elections resulted in a winner rather than a run off. The next market move will be guided by the EIA stats."

U.S. commercial crude stocks are expected to have fallen further last week at Cushing, Oklahoma, analysts said.

Weekly inventory data has been delayed by a day due to the holiday on Monday. Industry group, the American Petroleum Institute, will release data Wednesday at 4:30 p.m. EDT (2030 GMT), while the U.S. Energy Information Administration will release its report Thursday at 11:00 a.m. EDT (1500 GMT).

In Libya, new protests slowed work at Hariga port as the OPEC producer's output fell to 160,000 barrels per day (bpd), far less than the 1.4 million bpd produced before the 2011 uprising against Muammar Gaddafi.

The leader of rebel groups occupying the country's ports said he did not recognise Libyan Prime Minister Ahmed Maiteeq's new government and indicated a previously agreed deal to end his blockade could be in jeopardy.

Meanwhile, Ukrainian forces fought separatists in Donetsk for a second day on Tuesday after inflicting heavy losses on the pro-Russian rebels. The rebels had occupied strategic points in Donetsk and other towns in the east shortly after Sunday's presidential election. The election victor, Petro Poroshenko, rejected any talks with "terrorists."

Ukraine is a main gas supply route to Europe from Russia, and investors worry the conflict could disrupt oil supplies as well.

Heightened political risks have helped Brent gain more than 6 percent since this year's low of $103.95 in early April.

U.S. oil found support after U.S. manufactured goods unexpectedly rose 0.8 percent in April in a further sign the economy is slowly growing.

(Additional reporting by Christopher Johnson in London and Manash Goswami in Singapore; Editing by David Evans, Bernadette Baum and Marguerita Choy)