LONDON, Oct 11 (Reuters) - Russian Urals crude extended itsrally to over 10 days on Thursday as the market struggled withpoor cargo availability amid healthy refining margins.
In the Platts window, BP bid for a 22-26 cargo in the Balticat dated Brent minus $1.25 a barrel, some 5 cents stronger thanearlier in the week.
Activity was thin in the Mediterranean and in other grades.
Urals strengthened sharply in Europe's south last week andhas begun to catch up in the Baltic as several refiners tookadvantage of cheaper cargoes in Europe's north to bring them tothe Mediterranean.
As a result most of October cargoes were sold out whilepreliminary November programmes are not expected to emergebefore the end of next week.
An expected return of a number of European refineries frommaintenance should boost demand for oil, especially diesel-richgrades amid an acute shortage of distillates in Europe.
"When refiners return from maintenances it could improve thesituation but not necessarily massively. The surplus in lightgrades is still there despite good refining margins," said atrader in Azeri crude.
Azerbaijan accused BP
on Wednesday of making "falsepromises" on oil output and said the state had missed out on $8billion of potential revenues from what is one of the company'sbiggest projects in the world.
Eni said on Thursday the group saw production at the giantKashagan field in Kazakhstan starting in March, ahead of apreviously agreed start of June.
(Reporting by Dmitry Zhdannikov; editing by William Hardy)
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Keywords: MARKETS MEDITERRANEAN/CRUDE