Russia's federal budget could get a boost of more than 2 trillion roubles ($27 billion) from additional revenues this year if oil prices and the rouble exchange rate remain at current levels, the finance ministry said earlier on Thursday.
Crude inventories rose by 13.8 million barrels in the week to March 5 to 498.4 million barrels, compared with analysts' expectations in a Reuters poll for an 816,000-barrel rise.
Refining activity rebounded as well, but with overall utilization rates lower than usual for this time of year, stocks of gasoline, heating oil and diesel continued to decline.
Despite the uptick in crude prices, oil companies are expected to largely limit spending to marginally higher as investors reward companies showing capital discipline after years of low returns from the sector.
We believe this market will favor companies who demonstrate sustainable discipline and strong free cash flow generation with a track record of predictable returns of capital.
The report added that the additional burden on the import bill would also add to fiscal challenges as the government has already lowered the petroleum levy to Rs13 per litre to maintain petroleum prices at current levels.
At the time of filing this report, the index was being traded at 43,968.04 points showing a drop of 1083.02 points and a negative percent change of 2.4pc.
Saudi Arabia's benchmark index finished 0.3% higher, with Al Rajhi Bank rising 2% and Samba Financial Group climbing 1.4%.
In Dubai, the main share index eased 0.2%, hit by a 1.9% fall in blue-chip developer Emaar Properties and a 1.1% retreat in sharia-compliant lender Dubai Islamic Bank .
