Rubber Market Ends Lower On Weaker Crude Oil Prices, Regional Futures

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, July 2 (Bernama) -- The Kuala Lumpur rubber market ended lower on Thursday, pressured by softer crude oil prices and weaker regional rubber futures, a dealer said.

At the time of writing, Brent crude oil price fell 1.13 per cent to US$70.76 per barrel.

The dealer told Bernama that oil prices declined as traders continued to assess easing risks to West Asian crude supplies, with improving supply expectations weighing on the market despite lingering geopolitical uncertainty.

"Japanese rubber futures fell as a sharp deterioration in China's auto sales outlook dimmed demand prospects, while a drop in oil prices to their lowest level since March added further pressure," she said.

However, the dealer noted that the losses were partly cushioned by resilient US vehicle sales and stronger demand for hybrid and electric vehicles, with automakers reporting steady second-quarter sales despite what would normally be a bleak backdrop for the car business.

At 3 pm today, the price of Standard Malaysian Rubber 20 (SMR 20) fell 5.5 sen to 860.50 sen per kilogramme (kg), while latex-in-bulk declined four sen to 746 sen per kg.

-- BERNAMA