LONDON: Brent crude oil fell towards $104 a barrel on Thursday as ample supply in global markets was compounded by worries over the impact of trade sanctions on global economic growth. Russia announced a full list of U.S. and EU food imports to be banned in retaliation against Western sanctions over its support for rebels in Ukraine. "This continued escalation between the EU, U.S. and Russia over sanctions will be a negative for global econmoic growth," said Olivier Jakob, oil analyst at Petromatrix consultancy in Switzerland. Brent crude oil was down 30 cents at $104.29 a barrel by 0910 GMT, after closing at $104.59 a barrel on Wednesday, its lowest since Nov. 7. U.S. crude was down 30 cents at $96.62 a barrel, after reaching a six-month low of $96.69 in the previous session. Prime Minister Dmitry Medvedev said Russia will ban fruit, vegetables, meat, fish, milk and dairy imports from the United States, the European Union, Australia, Canada and Norway. The ban is valid from Aug. 7 and will last for one year, he said. Medvedev also said Moscow was considering barring European Union and American airlines from flying over Russian territory. Jakob said recovery in the European economy was still fragile and an escalation in East-West tensions would harm growth, weighing on the oil market. "This (Russian ban on food imports) will likely be followed by more sanctions from the EU and the U.S," he said. Oil prices have fallen more than $10 a barrel over the past six weeks, as global supply exceeded demand, building up a glut in the Atlantic Basin and Asian markets. This has pushed futures prices for prompt delivery below those of delivery in later months - a market structure known as contango. "For the Brent contango to endure, geopolitical tension must remain muted while the surplus in light oil supply in the Atlantic Basin must persist," analysts at BNP Paribas said in a note.

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