Russian stocks can grow as oil futures set many-month records

MOSCOW, Jun 9 (PRIME) -- The Russian stock market will likely open higher on Wednesday on the back of a record oil price increase, analysts said.

"We expect the MOEX Russia Index to open with a moderate growth of 0.1–0.3% at 3,810–3,820. The levels of 3,800 and 3,780 will be the nearest support. The levels of 3,830 and 3,850 will be important resistance," Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Alor Broker senior analyst Alexei Antonov said that oil recovered to many-months' record of $72.6 per barrel thanks to a slight reduction of the U.S. Energy Department 2022 production forecast.

Besides, there is no progress in the U.S.–Iran nuclear deal negotiations, while the market expected an agreement to be signed by June and sanctions against Iran removed immediately after that. Now an increase of global oil supply by 1.0–1.3 million barrels per day in the short term is postponed, he said.

The Russian oil sector is expected to lead the market with Lukoil and Gazprom Neft being promising speculative assets and Novatek and Gazprom more interesting in a longer term, the analyst said.

According to Manzhos, the Russian market will focus on the oil futures dynamics and the U.S. market opening. The U.S. Energy Department's weekly oil reserve report will affect the Russian market to a certain extent.

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