Russian stocks dropped on Monday due to falling oil prices, the country’s main export and budget revenue source, amid worries that Tropical Storm Isaac could suspend U.S. oil production, analysts said.

The MICEX edged down 0.38% to 1,448.57, while the RTS declined 0.43% to 1,430.61.

Russian trading floors began dropping after 4.30 p.m. Moscow time as oil prices lost ground after Tropical Storm Isaac swirled into the Gulf of Mexico. Brent crude dropped 0.79% to U.S. $112.69 a barrel by 7.17 p.m. Moscow time.

“The fall could also continue tomorrow,” ITinvest-Prospekt chief analyst Alexander Potavin said.

Russian electric power producers performed worse than the market as the sector remained uncertain, which forced investors to sell the stocks in the first place, Potavin explained.

National flag carrier Aeroflot Russian Airlines was among the day’s best performers, gaining 1.74% to 43.75 rubles per share, as lower oil prices make the firm’s fuel expenses cheaper, he added.

Analysts forecast that corporate news is likely to influence trade this week more than external developments amid the summer lull prior to the start of the business season in September with several Russian firms such as top lender Sberbank, mobile giant MTS, Aeroflot, steelmaker Severstal, and mining giant Evraz publishing financial reports later this week.

“In the week to come - the last before September, when a business season starts - will be quiet for markets… there will not be much macroeconomic statistics this week,” Mark Rubinstein from Metropol said in a research note.

“As far as the Russian market is concerned, there will be many corporate reports. This implies higher activity on the market,” he added.

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