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Yesterday home stock indexes made a step downwards. On Monday oil prices fell by over 5 percent associated with the message of Morgan Stanley investment bank expecting prices to fall to 20 dollars per barrel.

 

The week is started in good spirits. In the western mass media there appeared news that at the G20 summit western politicians came to agreement to prolong sanctions against Russia for a half of a year more.

 

The published OPEC report on oil production in September has caused fixing profits on long positions at the oil market. According to the report, the total production volume of the OPEC member countries made up 31.57 million barrels per day in September, which is a three-year-maximum.

 

The final results of September are disappointing for homeland RTS and MSCI Russia Capped indexes quoted in foreign currency. At the beginning of the month bulls tried to overcome the downward trend of June.

 

On Monday markets showed a new record lowering. The stock market of Chine has acted as a pathfinder. The day losses exceeded 8.5% to the close on Friday.

 

We think, oil will renew its lows in future, but for the moment locally we do not see any reasons for further oil price falling. Even if oil falls under 40 dollars per barrel, a strong reason is needed for that, for example, a new world recession.

 

As oil and gas companies form the backbone of this market, falling oil prices are disastrous for it. Once more at the oil market bulls have shown weakness at the moment of breaking through the technical support of 52.2 dollars at the chart of Brent crude oil.

 

Today the market is showing positive dynamics - the support level of 1580 (upward trend) of MICEX index has shown its importance.

 

On Monday oil prices were slightly moving up, but evening lowering predetermined a rather sensible minus of the day.

 

A strong prices lowering took place at the energy market yesterday. They have lost about 8% during the day.