Oil prices have scared the collapse of the deal, OPEC

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Investors quite calmly took the news that trump has canceled a meeting with the DPRK leader, although part of the restraint a negative market reaction is due to the fact that both countries leave a historic summit on the agenda. After mostly negative dynamics in Asia, European markets opened in a cheerful mood, waving from the increased uncertainty in geopolitics.
Meanwhile, the Russian indices started to rise at 0.5% with an eye on the dynamics of the sites of the Old world. Local optimism stems from the news that Deripaska out of the Board of Directors of RUSAL. On this background quotations of the Russian aluminum giant grow by 4% in the hope of easing American sanctions after the departure of the businessman, as demanded by Washington as a condition for relief.
A negative factor for the domestic market is the dynamics of oil prices. Brent is developing a bearish correction on the growing talk of a possible renegotiation of the deal and the easing of quotas. Saudi Arabia and Russia have already confirmed that at the June summit will discuss options for easing restrictions on mining. However, exporters should act very gently and carefully so as not to provoke a large scale wave of sales on fears of breaking the agreement. Brent crude, which yesterday dipped by 1.1 per cent, is already testing the mark 78 and can go up to 20-day moving average in the area 77,10.
The ruble opened with a gap down, reflecting renewed demand for the dollar in the Forex market and a decrease in quotations of “black gold”. However, while the momentum of the decline of our currency is not getting development through the peak of tax payments. By the end of the session may increase pressure on the rouble at the current balance of power in the dollar and oil. The nearest goal of bulls on the pair dollar/ruble at RUB 62
Sergey Kostenko,
Investment analyst