Russian stocks may decrease on oil price fall, ahead of holidays

MOSCOW, May 7 (PRIME) -- Russian stocks may decrease at Thursday opening due to falling prices for overbought oil and ahead of Victory Day long holidays, analysts said.

“Today we expect moderately negative dynamics of Russian stock indices. The main source of a positive has been depleted, while market participants will not take risks to restore the whole range of long positions ahead of the long holidays,” Alfa-Forex analyst Andrei Dirgin said.

Brent oil prices surged to almost U.S. $70 per barrel on Wednesday on positive U.S. oil reserve dynamics, but were pushed back to slightly above $67.5 per barrel later as investors decided to take profit, analysts said.

Foreign background prior to the Russian trade opening is mixed, Oleg Shagov, senior analyst at investment company Solid, said. The U.S. stock futures are slightly increasing in an attempt to regain losses of previous days, while Asian indices mostly demonstrate negative dynamics.

End