5 Dec 2018 18:13

VIEWPOINT: Short-term trend points to restoration of traditional ruble-oil correlation - RDIF

MOSCOW. Dec 5 (Interfax) - "The ruble on Tuesday remained in the range 66.20-66.90 rubles/$1, although the movement in the course of the day was from the lower end of the range to the upper end. The intersession fluctuations were to a great extent associated with oil price volatility, amid relative stability in the ruble price of a barrel of crude. The short-term trend points toward restoration of the traditional correlation between the ruble and the price of oil given the lack of FX buying on the market. As for crude, the market awaits the results of the OPEC and OPEC+ summit on Wednesday-Friday. Initial optimism was dampened a bit by comments from the Saudi Arabian oil minister that an agreement might require more time and coordination among the OPEC+ partners. Overall, external factors are totally dominant. Therefore, the ruble has not been able to strengthen, despite the presence of domestic preconditions in terms of the balance of payments, the lack of FX buying and monetary policy," Russian Direct Investment Fund (RDIF) analyst Dmitry Polevoi said.

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