Commerzbank: Ruble Rally Unlikely to Last Beyond Year-End as Oil Support Fades

According to analyst Tatha Ghose at Commerzbank, on June 9, rising energy prices driven by geopolitical tensions in Iran have recently boosted Russia's oil and gas revenues, providing support for the ruble. However, the analyst noted that oil prices may decline by year-end, while damage to Russian refineries from Ukrainian strikes and renewed U.S. sanctions are expected to constrain Russia's ability to capitalize on expanded OPEC+ production quotas in the medium term. "Once the oil price premium subsides, we expect the ruble to resume depreciation," Ghose said.
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