* Ukraine government vows to continue offensive vs rebels
* U.S. consumer spending dips, inflation up
* Coming Up: CFTC's commitments of traders report at 3:30 p.m. EDT
(Rewrites throughout, updates prices, adds analysts' commentary, changes byline, dateline, previous LONDON)
NEW YORK, May 30 (Reuters) - U.S. crude fell nearly $1 a barrel on Friday as traders took profit at the end of the month, but remained in the middle of a month-long trading range underpinned by supply worries and strong gasoline demand in the United States, the world's top oil consumer.
Brent also edged lower in range bound trade, but was supported by energy supply concerns as fighting continued in eastern Ukraine. Kiev's defense minister promised to push ahead with an offensive against rebels until "normal life" was restored.
Russia has warned that it will cut natural gas supplies to Ukraine in June over Kiev's gas debt, raising the possibility of deliveries to Europe being affected. But a European Union official said Friday he hopes to reach a deal by June 3.
Oil supply from Libya, a source of high quality, light crude, remained near a tenth of capacity with protests and violence disrupting output.
U.S. consumer spending fell for the first time in a year in April but the decline, which followed two months of solid gains, did not change expectations for a sharp rebound in economic growth this quarter.
Brent crude was down 58 cents at $109.39 a barrel by 11:45 a.m. EDT (1545 GMT), but was still up nearly 2 percent for the month.
U.S. light crude oil slipped 85 cents to $102.73 a barrel, but overall rose more than 3 percent in May.
"The market is wary of U.S. crude at $103 and $104," said Richard Hastings, a macro strategist at Global Hunter Securities in Charlotte, North Carolina. There is "fundamental discomfort" with going higher than $103, he said.
"The month's end is playing a factor but we're set hard in this range," said Tariq Zahir, analyst at Tyche Capital Advisors in New York. "I think we'll be heading to the lower end of the range... because we didn't break to the upside (earlier in May), and longs are coming off."
The U.S. Commodity Futures Trading Commission will release its data on speculators' net long U.S. crude futures and options positions for the week to May 27 later on Friday.
U.S. crude was partly under pressure from news of an overall rise in U.S. crude stocks, though other inventory figures were supportive.
Gasoline stocks fell 1.8 million barrels, data from the U.S. Energy Information Administration showed Thursday, compared with expectations of a 300,000-barrel gain, indicating a strong start to the U.S. summer driving season.
U.S. gasoline RBOB futures rose 2.3 cents to $2.9907 a gallon on the final day before expiry.
(Additional reporting by Christopher Johnson in London and Manash Goswami in Singapore; Editing by William Hardy, Susan Thomas and Marguerita Choy)