Attacks on Saudi infrastructure push oil prices, Russian stocks up

MOSCOW, Sep 16 (PRIME) -- The Russian stock market grew on Monday as oil companies received support from a rally in oil prices that happened after military attacks on oil infrastructure of Saudi Arabia temporarily halved the country’s output, analysts said.

The MOEX Russia Index rose 1.53% to 2,834.32 and the RTS increased 1.98% to 1,396.09.

“The situation on the national market has unfolded in a very logical way today. Oil prices soared after an attack on oil infrastructure facilities of Saudi Arabia boosted shares of oil companies,” Andrei Kochetkov, senior analyst at Otkritie Broker, said.

Dmitry Babin, stock market expert at BCS Broker, said that the air drones attacked Saudi Arabian oil infrastructure on September 14, which resulted in a record 5.7 million barrel contraction of the country’s daily oil output. Saudi Arabia said that exports would not be hurt as it will use oil stock and reserve capacities, but it may take weeks to fully restore the infrastructure.

The Brent oil price gained 9.715% to U.S. $66.70 per barrel as of 5.42 p.m. Moscow time, according to the ICE exchange.

Yelena Kozhukhova of Veles Capital said that the background for the Russian market was mixed during the day. The European bourses were in the red zone, as well as futures for U.S. stock indices, but high correlation with the oil market allowed the MOEX Russia index and the RTS index to stay in the green, she said.

Babin also said that shares of all major oil and gas companies were on the top of the Russian market today, while national flagship carrier Aeroflot fell noticeably as the increase in oil prices means an increase in the cost of jet fuel for the company.

Below are the MOEX Russia Index’ five most active stocks on Monday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Lukoil	+3.38	5559.00	10.392
Sberbank	+1.00	235.32	9.290
Rosneft	+4.79	429.70	7.472
Gazprom	+1.02	234.88	6.815
Surgutneftegas	+0.86	37.70	4.403

(64.4711 rubles – U.S. $1)

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