The oil price determines the dynamics of stock markets

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The Russian stock market after the correction attempts re-growth and a new all-time highs. Undoubtedly, the situation of the oil market has a positive effect on the General mood of major market participants and holds the attention of Western investors on Russian financial instruments. Oil has stabilized at the highest level in nearly four years as concerns about food crisis outweigh expectations for an increase in reserves of American oil. The organization of countries-exporters of oil and the promise of their allies to increase oil production will not be sufficient to offset losses from the us sanctions against Iranian oil.
Exporting countries of the Persian Gulf, apparently, fell more than expected in the market as South Korea, Japan and India already supply up to avoid the sanctions that must occur November 4. Although OPEC is trying to fill the void created by Iran and Venezuela, the negotiations between Saudi Arabia and Kuwait about the reopening of two oil fields in the neutral zone, has again reached an impasse. The start-up may result in an additional 500,000 barrels a day in production.
Currently, only Saudi Arabia is able to significantly increase production. On this background oil and gas companies continue active growth and market participants, both large and medium-sized fight for the best price for the investment. Shares of “Gazprom” tend to the price level of 200.00 rubles per share. Rosneft konsolidiruyutsya around the price of 500.00 rubles per share and of the court in terms trying to buy in the district price data.
Papers “Tatneft” of interest to investors from the prices 8700,00 rubles per share. In the short term, the price can reach 850.00 rubles per share. To other sectors to pay attention is not worth it. Since big money is concentrated in the oil and gas sector. On this background the Russian stock indexes will successfully be able to update historical highs.
U.S. stock markets closed in different directions. The rise and fall of individual stock companies in different sectors create a mixed dynamics of indexes. In particular, against the background of rising oil prices oil and gas companies remain the focus of attention of many investors and in almost all exchanges.
The largest U.S. public oil company, Exxon Mobil Corp (N: XOM) is considering investing a billion dollars at its Singapore refinery, the largest in the company, in advance of new rules for the global shipping industry, starting in 2020, said Wednesday chief Executive officer.
The company is evaluating a multibillion-dollar project at our integrated production facility in Singapore. In case of continuation project the company plans to introduce technologies that transform the cheaper by-products in cleaner products with higher value including a 0.5% sulphur fuel that will be acceptable option for the vast majority of the Maritime sector.
The international Maritime organization (IMO) introduces new rules with respect to Maritime fuels in 2020, limiting the sulfur content to 0.5 percent from 3.5 percent currently, to limit the contamination of products from the world’s courts. Singapore refinery: Exxon is the world’s largest, with a capacity of about 592 000 barrels per day. Singapore is also the largest integrated petrochemical complex in the oil giant. In September, Exxon announced that it plans to spend more than $ 650 million on upgrading the UK’s largest refinery, Fawley on the South coast of England. Therefore, shares of the company will be highest priority for investment with growth potential to $88,00 per share.
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Gaidar Hasanov
Expert
“International financial center”