Hungary poses stumbling block for EU39;s Russia oil sanctions
OPEC set to stick to modest output hike for July, sources say
Oil prices up about 50 so far this year

LONDON, May 27 Reuters Oil prices rose on Friday and were on track for weekly gains, supported by a prospect of a tight market due to rising gasoline consumption in the United States in summer, and also the possibility of an EU ban on Russian oil.

Brent crude was up 58 cents, or 0.5, at 117.98 at 0844 GMT, and was on track for a gain of about 5 this week.

U.S. West Texas Intermediate WTI crude rose 27 cents, or 0.2, at 114.36 a barrel. WTI is set for a weekly gain of about 1.

Oil prices have risen to the highest level since end of March, benefiting from renewed declines in U.S. oil inventories, said UBS analyst Giovanni Staunovo.

U.S. gasoline stocks fell by 482,000 barrels last week to 219.7 million barrels, U.S. Energy Information Administration said on Wednesday. The start of summer driving season in the United States normally entails increased consumption.

The U.S. driving season and strong travel demand should help prices. With supply growth lagging demand growth, the oil market is likely to stay undersupplied. Hence, we remain positive in our outlook for crude prices, Staunovo added.

Both benchmark crude contracts were also supported as the European Commission continued to seek unanimous support of all 27 EU member states for its proposed new sanctions against Russia, with Hungary posing a…