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Putin says oil prices acceptable for Russia

The increase of oil prices had a favorable effect on the Russian exchange market indices

MOSCOW, October 5 (Itar-Tass) – Russia finds the current prices of crude oil quite acceptable, Prime Minister Vladimir Putin said Wednesday at a meeting on changes in the 2011 budget.

“We know of course that the price has slid a little but on the whole it keeps up an acceptable level,” he said.

Tuesday, crude sank below the $ 100 per barrel mark on the London Commodity Exchange for the first time in two months, yet it grew a little to $ 100.73 per barrel by the end of the trading session.

The growth continued Wednesday. By 06:30 GMT, a barrel of Brent went up to $ 101.61. The price of a barrel of WTI climbed $ 2.25 to $ 77.92 in the electronic trading system in New York by the same hour.

Analysts say the prices grew following a release of the data on oil reserves in the U.S. and the Federal Reserve statements that it was ready to take steps towards stimulating the national economy if need be.

The increase of oil prices had a favorable effect on the Russian exchange market indices, too, as an upward dynamics could be seen there for the first time in four days.

The indicators were climbing at an encouraging rate but the achievements were marred later in the day by massive sales on the part of foreign funds, which are experiencing a considerable outflow of finances.

Nonetheless, the increasing prices of crude oil and industrial metals, as well as the news from abroad helped the Russian markets to remain in the green zone all the same.