RTS soared 3.8% on the approval of Iran’s initiatives to support oil prices

MOSCOW, February 17. The stock indices of the Russian Federation ended the trading session higher. So, the MICEX index (MICEX) by the end of trading on the Moscow stock exchange rose by 0.94% to 1770,31 points, and the RTS jumped by 3.84% to 735,81 item.

In the evening of 17 February, the Iranian oil Minister Bijan Namdar Zanganeh said that Iran would support any initiative to improve the situation with oil prices. While Zanganeh has described the meeting between the petroleum Ministers of the four countries, held in Tehran, as good. 17 February in the Iranian capital passed negotiations of Ministers of oil of Iran, Venezuela, Iraq and Qatar, who discussed the possibility of “freezing” the level of oil production.

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Against this background, oil prices are rising. The cost of futures for oil of mark Brent with delivery in April 2016 on the ICE stock exchange in London jumped 6.2% to $34.2 per barrel.

On the eve of the Russia, Saudi Arabia, Qatar and Venezuela following talks in Doha has said it is ready to save, on average, in 2016 oil production at the level of January 2016, if other countries-oil producers will join this initiative.

However, Iran still has not expressed a willingness to join the initiative to stabilize oil production at the January level. “Russia and Saudi Arabia have agreed to freeze production if they will join Iran, which lifted sanctions. From this point of view, the balance of risks for Russian stock indices shifts towards fall. The target level for the MICEX index is slightly above 1750 points, and when you decrease the oil by 1% and the RTS index could fall to 714 points,” warns the Director of the analytical Department of the IR “Golden Hills – Kapital AM” Mikhail Krylov.

In addition, tomorrow the Russian market can influence the rhetoric of the U.S. Federal reserve. On 17 February, investors around the world await the publication of minutes of the January FOMC meeting (22:00 GMT), which may shed light on the Outlook for monetary policy in the U.S., adds the expert of “BCS Express” Oksana Kholodenko. “Until the market puts on raising rates by the fed this year. In case of confirmation of such ideas will be received, it can be a positive for equity assets and bonds, parallel to the weakening dollar,” she explains.