The oil continues to rise from the internal and external factors on the Russian market

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The oil continues to rise from the internal and external factors on the Russian market. Technical momentum after breaking out of a consolidation and a breakout of important resistance, this time reinforced information on the strict implementation of its plan of OPEC to retain production rates of the necessary to maintain stable prices.
Until the payment of such amounts by the U.S. and partly in Russia (which could get out of the agreement), quotes the “black gold” will be pointing up. Against this background, the ruble strengthened slightly. Corporate reports yesterday in Russia were published at the oil companies, so market participants looking for trading opportunities in the bound for 2017. Of course, after the success of “Rosneft”, a report for 2017 presented and LUKOIL, quotes, which are moving more confident competitors, in connection with his excellent performance.
In addition, on Wednesday evening the Ministry of Finance proposed to end the tax maneuver in the oil industry that will reduce the burden on companies and will increase the profitability of their activities. Investors reacted to the news, even stronger than other signals from the beginning of the year in the oil industry, because exports significantly affect the incomes of companies. Of course, even the adoption of such a law real burden on the oil industry to weaken slightly, the Finance Ministry will give FNS an opportunity to pick their own using other tools, but the fact of the tax cut suggests that shifts in the government there and the new presidential term may actually be a breakthrough in the economy.
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Alexander Grigorenko,
Asset Manager
IR Global Capital