Russian stocks to decrease as oil prices under pressure

MOSCOW, Nov 13 (PRIME) -- The Russian stock market will open lower on Friday because oil prices have hit a six-year low, analysts said.

“The acceleration of oil reserves growth in the U.S. is a pressure factor for oil contract quotations, there are also concerns over the U.S. Federal Reserve System (Fed) policies,” investment company Olma senior analyst Anton Startsev said.

Brent declined to a record low of U.S. $44 per barrel. At 9:19, Moscow time, Brent recovered 0.05% to $44.08 per barrel. The OPEC predicts low oil demand, which adds to a downbeat mood on the market, Pavel Salas, CEO of eToro in Russia and CIS, said.

The RTS was falling to a lesser degree than oil prices on Thursday, all these factors mean that traders believe the current oil price slump will not last long, Promsvyazbank analyst Ilya Frolov said.

Investors believe the Fed will tighten its policies in December, Salas said. The most recent pessimism happened because New York Fed Chairman William Dudley joined those who speak in favor of raising the key rate soon, Startsev said.

The worries that the Chinese economy’s overcooling are also putting a pressure on the Russian stock market, Salas said.

On Friday, Russian traders will pay attention to U.S. statistics releases, Frolov said.

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