-“Coronavirus anxiety” in Russian markets
The decline in the Russian ruble and stock exchange was felt last week due to the spread of the new type of coronavirus (Kovid-19) and the downward pressure on oil prices.
With the spread of coronavirus to countries outside of China and the decline in oil prices, the Russian ruble fell 0.7% against the dollar last week to 66.4 for the first time since Sept. 6 and fell 1.61% against the euro to 72.4.
The Moscow Stock Exchange (MICEX) index also fell by 2.46% to 2,943 points, and the RTS index fell by more than 4.2% to 1,399 points.
Analysts point out that investors' risk appetite has decreased, based on concerns over the possible introduction of quarantines from the coronavirus spreading to countries outside China.
Russia closed its borders with China, one of Russia’s biggest trading partners, and stopped issuing visas to Chinese citizens.
-No disagreement with Saudi Arabia in OPEC agreement: Russian Energy Minister
Representatives of Russian oil companies and Russian energy ministry officials held a recent meeting to consider the OPEC agreement.
In addition to the production cutback decision by OPEC, led by Saudi Arabia, and some other oil-producing countries led by Russia, it was expected that there would be an additional cut-off in production due to the global economic slowdown as a result of the coronavirus outbreak.
Speaking to Russia’s TASS news agency, some sources stated that Russia would not support a further increase in production cuts.
Furthermore, a report in the U.S.-based The Wall Street Journal suggested that Saudi Arabia wanted to end its cooperation with Russia on the oil markets.
Russian Energy Minister Alexander Novak stated that Russia would like to continue cooperation with Saudi Arabia for the production cutback agreement between the Organization of Petroleum Exporting Countries (OPEC) and some countries outside OPEC.
"We have never had a disagreement with Saudi Arabia on the OPEC agreement," he underlined.
Reiterating Russia’s satisfaction with its cooperation with Saudi Arabia, Novak said: "we want to continue this cooperation not only within the scope of the OPEC agreement but also between the two countries."
Novak told reporters last week that several meetings on the OPEC agreement would be held this month.