Moscow shares higher in afternoon trade as crude futures surge

Moscow shares higher in afternoon trade as crude futures surge

	Published : Mon, 15 Oct 2007 13:57 By : Agencies Print this Story

MOSCOW (Thomson Financial) - Moscow shares gained in afternoon trade with Russia's oil majors in focus after Mid-East tensions pushed crude futures to new records.

At 4.49 pm, the RTS index was up 15.51 points, or 0.72 pct, at 2,178.62, just off the all-time high of 2,181.68 set earlier today. The rouble-denominated MICEX rose 8.18 points, or 0.45 pct, at 1,843.39.

London's benchmark Brent crude contracts for November delivery were up 1.15 usd at 81.70 usd per barrel this morning, breaking through last month's previous all-time high of 81.05 usd.

Meanwhile, New York crude contracts for November delivery climbed 1.15 usd to 84.85 usd a barrel, having earlier hit a fresh all-time high of 85.19 usd, the first time ever above 85 usd.

The price rise has come as Turkey threatens to invade northern Iraq to root out members of the Kurdistan Workers Party (PKK), which it holds responsible for a series of recent attacks on the Turkish military, and local civilians.

While Turkey's domestic production of crude is limited, oil analysts are concerned an escalation against the PKK could lead the group to target the Iraq-Ceyhan and the Baku-Ceyhan pipelines, which deliver oil through Turkey to the Mediterranean coast.

Rosneft rose 0.04 usd, or 0.46 pct, at 8.67 usd on the RTS, while in London trade Gazprom Neft ADRs climbed 0.06 usd at 23.30, Surgutneftegas ADRs gained 0.50 usd at 65.80 and Lukoil ADRs rose 0.80 usd at 89.00 usd.

Severstal declined as investors mulled the possibility that the steel producer might raise its bid for Celtic Resources Holding after the AIM-listed miner last week urged shareholders to reject Severstal's bid.

Severstal shares were off 1.3375 usd, or 5.61 pct, at 22.50.

Transneft also lost 25.00 usd at 1,835.00 after the Russian oil pipeline operator said it had appointed Nikolai Tokarev as its new president, replacing Simon Vainshtock.

alfred.kueppers@thomson.com

amk/cm2

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