Russian assets traded stronger on Wednesday despite a slight retreat in crude prices, with analysts saying oil was still supporting the rouble and shares of major energy companies. At 0805 GMT, the rouble was 0.3 percent stronger against the dollar at 65.54 and had gained 0.5 percent to trade at 74.42 versus the euro. Brent crude oil, a global benchmark for Russia's main export, was down 0.7 percent at $44.38 a barrel on concerns that a meeting of global oil producers planned for Sunday could fail to agree an output freeze.
On Tuesday, Brent hit a four-month high on reports that Russia and Saudi Arabia had agreed to freeze production. "Moscow has a huge interest in talking the market up - and it is doing a stellar job despite I think little real evidence that the Saudis are going to do that much on the production side," Timothy Ash, head of emerging-market strategy at Nomura, said in a note.
Analysts at BCS brokerage said oil prices of around $44 were supportive for the Russian rouble. Sberbank analysts, who expect a deal at the meeting in Doha, say the rouble could firm further. "Brent at $45 per barrel might be consistent with dollar-rouble near 65 (roubles per dollar)," they wrote in a note.
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