UPDATE 8-Oil down, U.S. crude slides $1 on Kansas refinery fire

* U.S. crude falls more than $1 to intraday low of $100.51

* Libya slides into chaos, but low output already expected

* EU reaches deal on Russia sanctions, prompts short rally

* Coming up: API weekly oil data at 2030 GMT

(Updates prices; adds analyst quotes, rewrites throughout)

NEW YORK, July 29 (Reuters) - Oil prices fell on Tuesday, with U.S. crude leading the decline as a refinery fire in Kansas curbed demand for benchmark WTI, while concerns over possible export disruptions stemmed losses for global marker Brent.

Brent futures pared losses after news that European Union governments agreed on Tuesday to impose additional economic sanctions on Russia. However, the rebound soon stalled as concerns eased the sanctions would have an impact oil exports in an already over supplied market.

"I think the market is breathing a sigh of relief. The new sanctions against Russia don't seem to be a game-changer, as long as we don't have a supply disruption," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.

Brent crude was down 20 cents at $107.37 a barrel by 11:52 a.m. EDT (1552 GMT) after swinging between $107.13 and $108.05 earlier in the session.

U.S. crude dropped $1 to $100.67 a barrel after touching an intraday low of $100.37, the lowest since mid-July.

Prices tumbled after news that CVR Energy Inc's 115,000-barrel-per-day refinery in Coffeyville, Kansas, a major consumer of West Texas Intermediate crude, was shut down following a fire in a gasoline unit.

Inventories in the Cushing, Oklahoma, delivery point for U.S. futures have fallen to their lowest in six years, putting more scrutiny on local supplies in the area.

U.S. nationwide commercial crude oil inventories probably fell by 1 million barrels in the week to July 25, according to a Reuters survey of analysts ahead of weekly data due out later on Tuesday and on Wednesday. U.S. gasoline stocks could have risen by 1 million barrels last week, adding to bloated supplies.


Both market bounced off their intraday lows after reports emerged that the new economic sanctions against Russia will target the country's oil industry, defence, dual-use goods and sensitive technologies.

However, despite escalating tension between Russia and the West, global oil production has exceeded demand, leaving pockets of excess supply in Africa and Europe.

"The likelihood of a supply disruption remains extremely low as the ability of other regions to respond, particularly the U.S. energy sector, remains high," analysts at Goldman Sachs led by Jeffrey Currie said in a note to clients.

Crude exports from Iraq, the second-largest OPEC producer, stayed near record levels as oil output in the south remained untouched by the conflict with Islamist militants.

West African physical crude markets were over-supplied, with "a lot of cargoes from West Africa still looking for a home," said Olivier Jakob, an analyst at Petromatrix in Switzerland.

Limited oil disruptions hit Libya, where oil production fell to around 450,000 barrels per day (bpd) last week amid escalating violence. But analysts said the OPEC producer's low output has already been factored into oil prices.

(Additional reporting by Rowena Caine in London and Florence Tan and Theodora D'cruz in Singapore; Editing by Christopher Johnson and Andre Grenon)