Lukoil Discount Swells as Oil Plunges: Russia Overnight - Bloomberg

Lukoil Discount Swells as Oil Plunges: Russia Overnight - Bloomberg:

"Offshore receipts of OAO Rosneft and OAO Surgutneftegas fell last week, extending their discounts versus Moscow shares, as Russian equity markets open after a four-day holiday.

Global depositary receipts of Rosneft, Russia’s largest oil producer, slipped 2.5 percent in London last week, extending the discount to the company’s Moscow stock to 2.9 percent, the widest gap since January 2009. American depositary receipts of Surgut, the third-largest oil company, slid 3.7 percent to trade 3.2 percent below the local equity, the biggest gap since May. The Bloomberg Russia-US Equity Index fell for the first time in three weeks.

Oil, which together with natural gas accounts for about half of Russia’s budget revenue, dropped the most in 19 months last week as a U.S. government report showed that inventories of gasoline and distillate fuel climbed. Rosneft’s exports plunged 15 percent in December compared with the prior month, data from the Energy Ministry showed Jan. 2. Markets in Russia shut for national holiday Dec. 30 and are set to reopen today before closing for Orthodox Christmas tomorrow."

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