Russian stocks seen edging up on oil price recovery

MOSCOW, Oct 19 (PRIME) -- The Russian stock market may increase slightly at the start of the Wednesday's session on the back of an oil price recovery after Tuesday's fall, analysts said.

"The current external background can be characterized as moderately positivó. This creates conditions for an upward correction at the opening of the MOEX Russia Index session," Vitaly Manzhos, senior risk manager of Algo Capital, said.

According to the analyst, a 0.3–0.9% increase of the U.S. stocks futures, and a 0.3% rise of the Brent deals will promote some growth on the Russian market.

Georgy Vashchenko, deputy director of the research department of Freedom Finance Global, said that the oil price correction of Tuesday came in the wake of a U.S. decision to sell 15 million barrels from the reserves with a plan to replenish the reserves when the prices decrease below U.S. $72 per barrel.

The dynamics is seen as short-term because the market supply rise will not cover reduction of output by 60 million barrels per month by virtue of an OPEC+ ruling, the analyst said.

According to Manzhos, India’s refusal to join the European initiative to limit the Russian oil prices and Pakistan’s readiness to buy oil and oil products at the prices set for India can support the Russian market.

Gazprom may come under pressure as the State Duma passed bills on additional taxes on the company on Tuesday in the first reading, he said.

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