Rubber Market Ends Lower On Weaker Oil Prices

By K.Naveen Prabu

KUALA LUMPUR, Sept 23 (Bernama) -- The Malaysian rubber market closed lower today, pressured by falling oil prices, a dealer said.

He said oil prices slipped in Asian trading as investors weighed the impact of escalating geopolitical tensions and the prospect of tougher sanctions on Russian energy flows.

At the time of writing, Brent crude oil was down 0.32 per cent at US$66.36 per barrel.

The dealer added that market sentiment was further dampened by mixed signals on United States (US) interest rates amid ongoing geopolitical uncertainties in the Middle East and Eastern Europe.

“It was reported that investors turned cautious after several US Federal Reserve officials signalled on Monday that the central bank may not need to cut interest rates further following last week’s reduction,” he told Bernama.

Nevertheless, he said further losses were capped by concerns over a potential natural rubber supply shortage due to the rainy season in major producing countries.

“Top rubber producer Thailand’s meteorological agency has forecast scattered thundershowers and isolated heavy rains from Sept 24 to 29 in the southern region,” he said.

At 3 pm, the Malaysian Rubber Board reported that the price of Standard Malaysian Rubber 20 (SMR 20) fell 6.5 sen to 730.50 sen per kilogramme (kg), while latex-in-bulk decreased two sen to 579.00 sen per kg.

-- BERNAMA