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UPDATE 3-Brent oil hits fresh 1-month low under $110 in 7-day slide

* Brent set for longest losing streak since Oct 2012

* Coming up: weekly U.S. API inventory data at 2030 GMT

(Recasts with fresh lows, updates prices, previous dateline SINGAPORE)

LONDON, July 8 (Reuters) - Brent crude fell to a fresh one-month low beneath $110 a barrel on Tuesday, as prospects for a rise in Libyan oil exports improved and fears of supply disruption in Iraq eased.

The benchmark is headed for a seventh straight session of losses, the longest losing streak since October 2012, and has shed 5 percent since the Iraq crisis drove prices to a nine-month high of $115.71 in June.

Brent crude for August delivery was at $109.71 a barrel by 0804 GMT, down 53 cents and just above a month low of $109.62 hit earlier in the session.

U.S. crude edged down 14 cents to $103.39. It settled down for a seventh session on Monday, the longest straight decline since 2009. Its discount to Brent fell to $6.29, the narrowest since mid-June.

"The market appears to be going through a process of removing the Middle East premium attached to Iraq," said Michael McCarthy, chief strategist at CMC Markets in Sydney.

Sweeping change in Iraq is very unlikely and the market is re-pricing oil on the back of that, he said. "To add to the picture, we have some technical selling kicking in."

Investors now see less risk that Islamist militants could advance beyond the edge of Baghdad and disrupt oil flow in the country's south, which accounts for the bulk of Iraq's output and exports.

Still, Iraq remained in political limbo as its new parliament put off its next session for five weeks.

In Libya, preparations are under way to reopen two major oil ports in the east that were shut by protests almost a year ago. The Ras Lanuf and Es Sider ports make up more than a third of the OPEC producer's export capacity.

Any additional Libyan barrels that may emerge would be regarded as a negative for Brent, which is a light crude of similar quality to Libyan oil and competes in similar markets, BNP Paribas analysts said in a note.

The analysts remained skeptical that Libya could sustain maximum throughput until the completion of maintenance on the pipelines from the oilfields to the ports.

Libya's oil output is currently 326,000 barrels per day, a spokesman for National Oil Corp said on Monday, well below its post-civil war high near 1.4 million bpd.

Investors are also awaiting weekly oil inventory data from the United States due later on Tuesday and Wednesday for clues on the demand outlook in the world's largest oil consumer.

U.S. commercial crude inventories were forecast to have dropped in the week to July 4, a preliminary Reuters survey of five analysts showed. Distillate stockpiles were expected to have risen and gasoline inventories to be unchanged.

(Additional reporting by Florence Tan in Singapore; Editing by Dale Hudson)