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RUB On the Move Ahead of Expected OPEC Supply Cap; Nord Stream 2 Brushed Off

RUSSIA
  • USD/RUB opens firmly lower ahead of today's OPEC+ meeting with Brent trading near $53/bbl on expectations that producers may cap oil production going forward on 1H21 demand concerns.
  • Analysts expect OPEC+ to maintain January levels (+500k bbls as decided in Dec) in Feb on slower than expected vaccine rollout.
  • RUB leads the CEEMEA region +1.4% vs the USD as the DXY sags to 89.60.
  • Spot has taken out 73.50 and may look to drift back to 73.00, provided risk sentiment remains supportive and OPEC follows through on the cap.
  • Nord Stream 2 sanctions have been mostly brushed off but could see more volatility injected into the cross when Russia responds to the US.
  • SUP 1: 73.3845, SUP 2: 73.1217, SUP3: 72.8237, RES 1: 73.6433, RES2: 74.8229 (also 50% fib).
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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