* US, other nations reject Crimea's pro-secession vote * IEA raises forecast for 2014 global oil demand growth * Warmer weather to buoy U.S. inventories (Adds comment, updates prices) By Keith Wallis SINGAPORE, March 17 (Reuters) - Brent futures fell below $108 a barrel on Monday, wiping out earlier gains as concerns eased that fighting could erupt after Ukraine's Crimea region voted overwhelmingly to join Russia in a referendum at the weekend. U.S. benchmark West Texas Intermediate (WTI) also slipped as investors saw a diplomatic resolution to the crisis emerging even though Washington and Europe could impose punitive measures against selected Russian targets as early as Monday. Western powers have said the referendum was illegal and have rejected the result. Brent crude dropped 44 cents to $107.77 by 0825 GMT, down from Friday's close of $108.21. U.S. crude futures were steady at $98.89. Brent had climbed 10 cents and WTI 24 cents in early trade on Monday amid the risk of supply disruptions if the United States and Western countries impose sanctions on Russia, the world's second largest oil producer. "People realise (there is) going to be some diplomatic settlement," to the situation in Crimea, said Tony Nunan, oil risk manager at Japan's Mitsubishi Corporation. China reiterated calls for calm and restraint in Ukraine on Monday, while Vice Foreign Minister Li Baodong said a political settlement was the only way to resolve the Ukraine crisis. "Hesitation over the implementation of sanctions on Russia could lead to a step-down in geopolitical risks," said Tan Chee Tat, investment analyst at Singapore's Phillip Futures. Once tensions ease over Ukraine ease, oil prices are likely to come off again as the northern winter comes to an end. The potential for warmer weather in the United States and Europe is likely to ease oil demand after a long, harsh winter, said Mitsubishi's Nunan. "Spring is in sight. Inventories in the U.S. are building," he said. Oil prices were initially supported on Monday after the International Energy Agency's (IEA) raised its global oil consumption forecast for 2014. IEA estimated global demand would grow to 92.7 million barrels per day in a report on Friday amid an improving global economy. Tensions between the Libyan government and protesters that have blocked oil production over the past few months, cutting oil production to little over 200,000 bpd from 1.4 million bpd in summer, have also supported oil prices Tan said. . But any shortfall from Libya would be "more than made up" by exports from Iran, said Jonathan Barratt, chief executive of commodity research firm Barratt's Bulletin in Sydney. South Korea's crude imports from Iran doubled in February from a year ago to 294,069 bpd, up 4-1/2 times from the previous month, preliminary customs data showed on Saturday. . Investors will also be eyeing the U.S. Federal Reserve's two-day meeting which starts on Tuesday. Policymakers are likely to support the Fed's earlier decision to cut its bond-buying pace by another $10 billion a month. (Editing by Muralikumar Anantharaman, Sunil Nair and Tom Hogue)

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