RUSSIAN BONDS DOWN
BLOOMBERG wrote, Russian government bonds dropped for a third day as crude oil traded near a four-month low, crimping investors' appetite for assets in the world's biggest energy exporter.
The yield on five-year bonds rose five basis points to 8.81 percent, the biggest increase on a closing basis in almost three weeks. The ruble was little changed at 66.6450 per dollar as of 1:34 p.m. in Moscow, leaving it down about 1 percent this week, in line with the drop for Brent crude, which traded at $42.07 per barrel.
Russian assets are under pressure as concerns resurface that the global oil market is over supplied. After rallying from a record low at the start of the year as crude rebounded, the ruble is the third-worst performer in emerging markets so far this quarter.
"Russia should be, and will be, selling off if oil does not bounce back to $45 a barrel," said Anastasia Levashova, a money manager at Blackfriars Asset Management Ltd. In London.
The government's five-year local-currency borrowing costs are up 15 basis points, compared with a one basis point increase for Poland's similar-maturity debt. Russian stocks retreated for a second day, with the Micex Index dropping 0.2 percent.
At the same time, the drop in bond prices is unlikely to hurt the Finance Ministry's two debt auctions Wednesday at which it is due to offer 30 billion rubles ($450 million) of bonds, according to UralSib Capital. The state is paying out about 216 billion rubles in coupons and maturing bonds, meaning funds will be available to buy the notes due 2021 and 2031 that are being tendered today, according to Dmitry Dudkin, head of research at UralSib.
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BLOOMBERG - As Saudi Arabia led OPEC’s output cuts this year to shrink a global glut, it’s lost out on market share in the world’s biggest energy consumer. Russia in September retained the top Chinese supplier spot for the seventh straight month, while the kingdom was third.
PLATTS - The quality of Russia's key Urals crude exports towards Europe will continue to fall next year as more of the country's low-sulfur oil flows are diverted eastward to China, Russian national oil pipeline operator Transneft warned.
FT - OCI — the world’s third-largest polysilicon maker by capacity and South Korea’s biggest — this month reported a 3,373 per cent increase in operating profit to Won78.7bn ($72m) for the July-September quarter, its best performance in five years. Rival Hanwha Chemical saw third-quarter net profit jump 25 per cent to a record Won252bn.
U.S. Rig Count is up 330 rigs from last year's count of 593, with oil rigs up 273, gas rigs up 58, and miscellaneous rigs down 1 to 0. Canada Rig Count is up 41 rigs from last year's count of 174, with oil rigs up 13, gas rigs up 30, and miscellaneous rigs down 2 to 2.