Russian stocks seen increasing on oil price growth

MOSCOW, May 30 (PRIME) -- The Russian stock market will likely open with gains as the oil prices are rising on expectations of a partial E.U. ban on Russian oil imports, while arrest of an Iranian tanker may result in troubles with oil deliveries from the Persian Gulf, analysts said.

"The external background before the start of trade in Russia is positive. China is gradually removing the quarantine restrictions, which is seen as a condition for higher business activity. Besides, the oil price growth is supported by the geopolitical tensions," Otkritie Research’s analyst Andrei Kochetkov said.

The oil prices continued to increase on Monday morning on media reports that the E.U. could forbid oil imports by sea completely, while leaving only deliveries via the Druzhba pipeline outside the sanctions. Confiscation of the Iranian tanker may endanger oil deliveries from the Persian Gulf, which is why the Russian oil sector will likely outperform the market while the others are likely to change marginally.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that the Asian markets demonstrated positive dynamics in the morning with the Shanghai Composite growing by 0.4%, and the Nikkei225 adding 2.2%.

The U.S. markets would be closed for Memorial Day, Kochetkov said.

Manzhos said that the news about Russia's technical default expected to come later in the day can fully erase the morning gains.

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