Russian stocks can grow on oil strengthening over Middle East spat

MOSCOW, Oct 16 (PRIME) -- The Russian stock market can open higher and rise during the day on Monday thanks to the support of strong crude prices over the situation in the Middle East, analysts said.

“Weakness of the national currency and rising crude prices will support the Russian stock market. The oil price is increasing in light of the situation in the Middle East so there will be stable demand for energy shares, which will push the indices upwards,” BitRiver financial analyst Vladislav Antonov said.

Antonov added that the Brent oil price jumped by over 4% to U.S. $90 per barrel at the end of the previous week in light of the mounting geopolitical risks in the Gaza Strip, the persisting deficit of oil supply due to the OPEC+ limiting policy, and rising demand outlooks for 2023 thanks to recovery of the global economy.

The MOEX Russia Index can reach 3,200 during the day on Monday, Antonov said.

Cifra Broker analysts said that the global markets are demonstrating negative dynamics with major Asian bourses losing up to 2%.

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