Russian stocks can fall on decreasing oil prices

MOSCOW, Aug 24 (PRIME) -- The Russian stock market will likely open lower on Wednesday on the back of a steady oil price decline after the U.S. API reserves data publication, analysts said.

“A downward correction of the RTS following oil prices is possible today at the start of trade. The API statistics published yesterday in the evening demonstrated growth of the U.S. oil reserves by more than 4 million barrels a week, whereas market participants expected an increase by only 200,000 barrels,” Anton Startsev, a leading analyst at investment company Olma, said.

Iran has almost reached its pre-sanctions oil output. Vasily Koposov, head of financial market analysis at KIT Finance Broker, said that on the one hand, it will be unable to increase it any further because there is nothing to invest, but on the other hand, the current output coupled with a record production in Russia and Saudi Arabia pressures the prices. The Brent futures decreased 1.24% to U.S. $49.34 per barrel as of 9:26 a.m., Moscow time.

Russian exporters are scheduled to pay the mineral extraction tax on Wednesday meaning a possible increased intraday market volatility, Finam analyst Timur Nigmatullin said.

The MICEX is expected to edge down to open in a 1,985–1,990 range, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Oil and gas companies will be the Wednesday trading session’s outsiders, Nigmatullin said.

Investors are waiting for oil reserve statistics release from the U.S. Energy Department now, Startsev said. It will take place at 5:30 p.m., Moscow time.

Financial performance data by Vozrozhdenie Bank and the Caspian Pipeline Consortium will be the corporate highlights on Wednesday, Nigmatullin said.

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