-Covid-19 and low oil prices constrain Russia’s economy
Due to the new type of coronavirus (Covid-19) epidemic and the downward pressure on oil prices, the decline in Russia’s markets extended to the first day of this week.
As the coronavirus epidemic continues to spread and oil price losses increase, the Russian ruble fell 2.84% against the dollar to 74.6 and fell 3.1% against the euro to 83.
The Moscow Stock Exchange (MICEX) also fell by 3.15% in the first half of the day to 2.243 points, while the RTS index decreased by 1.83% to 973 points.
Analysts note as concerns over the coronavirus epidemic increase, and with the downward trend in oil prices, there is a corresponding fall in investor risk.
This downward trend is set to continue as Russian Energy Minister Alexander Novak signaled last week that Russia could increase oil production by 200 thousand barrels per day in April. "We do not think that there are conditions for a production cutback agreement with the Organization of Petroleum Exporting Countries (OPEC)," he said.
He added that there are “no conditions” for Russia and OPEC to make a new agreement regarding the oil markets.
Crude oil prices were down during Monday's early trading despite the U.S. Federal Reserve's cut to near zero of its benchmark interest rate during the second emergency meeting it held in a month to support the economy.