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Rouble firms to strongest level vs dollar since July as oil prices surge

Mon, 16th Sep 2019 08:59

MOSCOW, Sept 16 (Reuters) - The Russian rouble on Mondayreached its strongest level since July after oil prices surgedfollowing attacks on crude oil facilities in Saudi Arabia duringthe weekend that sparked fears of disruption in global supply.

In early trade, the rouble was 0.9% stronger against thedollar at 63.58, its highest since July 31, andhad gained 1% to trade at 70.57 versus the euro.

Oil prices surged on Monday, with Brent crude, a globalbenchmark for Russia's main export, posting its biggestintra-day percentage gain since the Gulf War in 1991.

"Irrespective of the actual physical impact (of theattacks), it is clear that Middle East geopolitical premium isback on the table," VTB Capital said in a note.

The Kremlin has said that Saudi Arabia had not requestedRussia's assistance following the attacks, and that Moscow wouldawait further developments in Saudi Arabia before making anydecision on Russian oil production.

Russian Energy Minister Alexander Novak said earlier onMonday that he would hold a phone call with his Saudicounterpart later in the day. Novak added that there was enoughoil in commercial stockpiles worldwide to cover the shortfall ofsupplies from Saudi Arabia.

Emerging market currencies, including the rouble, hadalready been bolstered last week by increased risk appetiteafter the United States and China made concessions onretaliatory tariffs, while the European Central Bank cutinterest rates in a bid to stimulate the economy.

Shares in state-controlled oil producer Rosneftwere up more than 3% at market opening, while those of privateproducer Lukoil were 3% higher.

Russian stock indexes were up.

The dollar-denominated RTS index was up 1.3% to1,386 points. The rouble-based MOEX Russian index was0.6% higher at 2,808 points.

For Russian equities guide see

For Russian treasury bonds see

(Reporting by Gabrielle Tétrault-Farber and Anna Rzhevkina;additional reporting by Anton Kolodyazhnyy; Editing by SherryJacob-Phillips)

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