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Med Crude-Urals extends rally to over 10 days

LONDON, Oct 11 (Reuters) - Russian Urals crude extended its rally to over 10 days on Thursday as the market struggled with poor cargo availability amid healthy refining margins.

In the Platts window, BP bid for a 22-26 cargo in the Baltic at dated Brent minus $1.25 a barrel, some 5 cents stronger than earlier in the week.

Activity was thin in the Mediterranean and in other grades.

Urals strengthened sharply in Europe's south last week and has begun to catch up in the Baltic as several refiners took advantage of cheaper cargoes in Europe's north to bring them to the Mediterranean.

As a result most of October cargoes were sold out while preliminary November programmes are not expected to emerge before the end of next week.

An expected return of a number of European refineries from maintenance should boost demand for oil, especially diesel-rich grades amid an acute shortage of distillates in Europe.

"When refiners return from maintenances it could improve the situation but not necessarily massively. The surplus in light grades is still there despite good refining margins," said a trader in Azeri crude.

Azerbaijan accused BP

on Wednesday of making "false promises" on oil output and said the state had missed out on $8 billion of potential revenues from what is one of the company's biggest projects in the world.

Eni said on Thursday the group saw production at the giant Kashagan field in Kazakhstan starting in March, ahead of a previously agreed start of June.

(Reporting by Dmitry Zhdannikov; editing by William Hardy)

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

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Keywords: MARKETS MEDITERRANEAN/CRUDE