Bloomberg News

Russia Stocks Drop Most in Seven Weeks as IEA Spurs Oil Tumble

June 23, 2011

June 23 (Bloomberg) -- Russia’s Micex Index sank the most in seven weeks as oil fell after the International Energy Agency announced it would intervene in the market with its emergency stockpiles for the third time in its history.

The 30-stock gauge declined 2 percent to 1,607.91 at the 6:45 p.m. close in Moscow, the sharpest drop since May 4. OAO Gazprom, the gas export monopoly, lost 3.2 percent, its biggest slide in a month. OAO Rosneft, Russia’s biggest oil company, fell for a fifth day, declining 2.3 percent to 229.07 rubles. About 8.8 million shares traded hands, or 74 percent of the 3- month average. The dollar-denominated RTS Index dropped 2.6 percent to 1,829.97.

Oil sank the most in six days after the IEA said it would release 60 million barrels of oil from emergency stockpiles, the third such intervention since it the agency was founded in 1974. Crude for August delivery declined as much as $5.72 to $89.69 a barrel in New York.

Coal producer OAO Raspadskaya jumped as much as 4.1 percent to 168.19 rubles, before closing up 0.7 percent at 162.68 rubles. Evraz Group SA, the Russian steelmaker part-owned by billionaire Roman Abramovich, may be preparing to buy control in the company where it currently holds a 40 percent stake, Troika Dialog analysts led by Sergey Donskoy wrote in a research note today.

--With assistance from Denis Maternovsky. Editors: Alex Nicholson, Gavin Serkin

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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