×

Med Crude-Urals stable, further strength seen

LONDON, Oct 10 (Reuters) - Russian Urals crude was stable on Wednesday with traders anticipating a further price spike in the next few days due to poor cargo availability and good demand from refiners.

"I would not be surprised if Urals rose further on the back of superb refining margins," one trader said referring to the Mediterranean market, where prices have strengthened to dated Brent minus 55 cents.

He said they could go as high as minus 30 cents.

"Urals is showing great refining value while the Med is short of barrels. So I think so we will see it going up again," said a second Urals trader.

He predicted that activity would remain thin until Russia publishes early loading programmes for November within the next 5-10 days.

"Urals is particularly tight and that is having an impact on the sentiment in other markets, notably Iraqi Kirkuk. If Urals gets stronger, then Kirkuk will certainly become more sexy," said a third trader, valuing Kirkuk at around dated Brent minus $2 a barrel.

A fourth trader said that demand from Poland and Germany were also supporting Urals in the Baltic as the countries need to buy more crude from Russian ports this month due to a short pipeline deliveries schedule.

"Each of those need at least 300,000 tonne a month from the sea. So the situation is getting tight especially since a lot of Russian refineries have come out of maintenances and there is zero stockpiles to feed that extra demand," he said.

In the Platts window, BP bid in the Baltic for an Oct 22-26 Urals cargo at dated Brent minus $1.45 a barrel, some 15 cents weaker than on Monday, but found no sellers.

(Reporting by Dmitry Zhdannikov and Gleb Gorodyankin; editing by William Hardy)

((dmitri.zhdannikov@thomsonreuters.com)(+44 207 542 38 13))

((For a database of oil supply and demand fundamentals upstream and downstream, Reuters subscribers can click on

((MED CRUDE OIL DIFFERENTIAL AND OUTRIGHT PRICE ASSESSMENTS:

Urals Med Urals NWE Kirkuk Siberian Light Saharan Blend CPC Blend Azeri CRUDE ARBITRAGE STORIES CRUDE OIL TRADES NORTH SEA CRUDE REPORT AFRICAN CRUDE REPORT

Russia oil export schedule, monthly

Russia oil exports, table, monthly

Russia oil output by company, monthly

Russia oil output/exports, monthly

Russia product export, monthly

energy speed guide crude speed guide NYMEX crude ICE crude OPEC North Sea crude oil oil products derivatives European products Latest ICE Latest NYMEX )) ))

Keywords: MARKETS MEDITERRANEAN/CRUDE