Russian stocks to rise as oil prices soar on OPEC meeting results

MOSCOW, Dec 1 (PRIME) -- Russian stocks are likely to increase on Thursday morning in line with soaring oil prices, analysts said.

“Today at the beginning of trading an increase of the RTS index is likely to continue as it’s following the oil prices. OPEC agreed to decrease the oil output by 1.2 million barrels a day from January 1, 2017, which took many traders by surprise judging by the market reaction,” Anton Startsev, a leading analyst at investment company Olma, said.

Oleg Shagov, head of investment company Solid’s research department, said that the ultimate influence of key external factors is positive for the Russian market at the beginning of Thursday. The Brent oil price jumped above a U.S. $52 per barrel mark after the OPEC decision, the U.S. stock index futures are edging up and main Asian floors are in the green zone.

“We expect the Russian stock market to open around 2,115 of the MICEX index and suppose that the indicator will set a new all-time high thanks to the favorable background,” Shagov said.

Timur Nigmatullin, an analyst at investment company Finam, said that the euphoria on the oil market will allow the MICEX to rise by 0.5–1% in the first half of the day. Growing oil was also supported by Energy Minister Alexander Novak’s statement that Russia is ready to cut its oil production by 300,000 barrels a day in January–June 2017.

Shagov also said that the most important event of the day on which investors will focus their attention is the President Vladimir Putin’s address to the Federal Assembly.

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