Rubber at 15-month high on crude oil rally

Rubber climbed to a 15-month high after crude oil price rose on optimism that the US economic recovery is gathering momentum, increasing its competitiveness against rival synthetic products that are made from petroleum.

Futures in Tokyo advanced as much as 1.5 per cent to the highest level since September 26, 2008. Oil rallied for a third day yesterday as initial US jobless claims fell more-than-estimated and orders for durable goods excluding transportation equipment topped economist forecasts.

“Rising crude oil prices and a weakening yen continue to drive rubber prices higher,” Rewat Yenchai, an analyst at AGROW Enterprise, said.

Natural rubber for June delivery climbed by as much as 4 yen to 278.9 yen per kg ($3,052 a tonne) on the Tokyo Commodity Exchange before settling at 276.3 yen. Prices gained 2.5 per cent this week, extending last week’s 9.2 per cent increase.

Crude oil for February delivery rose 1.8 per cent yesterday to $78.05 a barrel on the New York Mercantile Exchange, the highest settlement since December 1. Oil rose 75 per cent this year, set for the best performance in a decade. (BS)

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