Russian stocks seen falling early on oil price decline

MOSCOW, Dec 6 (PRIME) -- The Russian stock market will likely open lower on Wednesday in the morning on the back of an oil price decrease, analysts said.

"We expect sales in the Russian shares to become more active today at the start of trade,' financial marketplace Banki.ru senior analyst Bogdan Zvarich said.

"A further deterioration of the fuel market situation, where the nearest Brent futures retrenched to the lower bracket of the U.S. $75–80 range, will pressure our stock market. As a result, the MOEX Russia Index may start falling again, compensate yesterday's increase and make one more step towards the notch of 3,100," Zvarich said.

BitRiver financial analyst Vladislav Antonov said the Brent oil decreased to U.S. $76.99, its lowest since mid-November on fears that the OPEC+ states would be unable to fully meet their oil production cut promises.

As a result, the ruble continued to correct downwards against the U.S. dollar and the euro. Strengthening of the U.S. dollar and a higher demand for foreign currency ahead of the New Year holidays also played a role in the ruble decline, he said.

At the same time, obligatory foreign currency revenue sales by the exporters and a possibility that the central bank would raise the key rate to 16% on December 15 prevent a more significant ruble decline, according to Antonov.

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