Russian rouble soars to three-week high ahead of OPEC+ meeting

•   Brent crude oil, a global benchmark for Russia's main export, was up 4.5% at $34.3 a barrel.
• Foreign investors may become a driving force for the most attractive segments along the OFZ curve, said Rosbank analysts in a note.

MOSCOW: The Russian rouble soared on Thursday to a three-week high against the US dollar, as investors looked to a decisive OPEC+ meeting later in the day that could see the world's leading oil producers slash oil output in an effort to prop up prices.

At 1018 GMT, the rouble was 1.3% up against the dollar at 74.00, its strongest since March 17, and had gained 0.9% to trade at 80.61 versus the euro.

Brent crude oil, a global benchmark for Russia's main export, was up 4.5% at $34.3 a barrel.

Oil prices collapsed after a deal by OPEC and its allies limiting supply fell apart last month, squeezing a market already hit by falling demand due to the coronavirus outbreak, but a new agreement is not a foregone conclusion, with oil producers at odds over how to support prices.

"The main question remains open - will the world's largest powers be able to agree on an output cut," said Alor Broker analyst Alexei Antonov, warning that if discussions prove fruitless, oil prices could fall to as low as $20 a barrel.

US President Donald Trump said last week a deal he had brokered with OPEC leader Saudi Arabia and Russia could lead to cuts of 10 million to 15 million barrels per day (bpd), or 10% to 15% of global supplies, an unprecedented reduction.

"Given the already announced ambitious plans to cut production, there are still significant risks that the actual parameters of the deal might disappoint the market, which would negatively affect oil and the rouble," said Bank St Petersburg analysts.

The rouble was boosted on Wednesday by the Russian finance ministry's decision to resume weekly auctions of OFZ treasury bonds for the first time since early March.

Foreign investors may become a driving force for the most attractive segments along the OFZ curve, said Rosbank analysts in a note.

Russian stock indexes were up.

The dollar-denominated RTS index was up 2.8% to 1,145.3 points. The rouble-based MOEX Russian index was 0.8% higher at 2,690.3 points.

Shares in Russian steel pipemaker TMK were steady, having jumped 22% on Wednesday after the company said it had decided to de-list its global depositary receipts (GDRs) from the London Stock Exchange.