Crude rallies after nearly 10 slide over two days
Hungary digs heels in over EU embargo on Russian oil
Ukraine halts some Russian gas flows
Coming up EIA supply report, 1430 GMT

LONDON, May 11 Reuters Oil rose on Wednesday after plunging nearly 10 in the last two sessions, buoyed by supply concerns as flows of Russian gas to Europe fell and the European Union worked on gaining support for a Russian oil embargo.

Russian gas flows to Europe via Ukraine fell by a quarter on Wednesday after Kyiv halted use of a major transit route blaming interference by occupying Russian forces, the first time exports via Ukraine have been disrupted since the invasion.

Brent crude was up 3.87, or 3.8, to 106.33 a barrel at 1140 GMT, while U.S. West Texas Intermediate crude climbed 3.97, or 4, to 103.73.

I suspect the gas disruptions in Ukraine are having a steadily increasing impact, said Jeffrey Halley, analyst at brokerage OANDA.

The EU has proposed an embargo on Russian oil, which analysts say would further tighten the market and shift trade flows. A vote, which needs unanimous support, has been delayed as Hungary has dug in its heels in opposition. 

Oil also gained on hopes of Chinese economic stimulus after China39;s factorygate inflation eased and investors took comfort in signs of lower domestic COVID19 infections.

The price of crude has surged in 2022 as the Ukraine invasion added to supply concerns, with Brent reaching 139, the highest since 2008, in March. Worries…