Japanese rubber futures fall on weaker oil

SHANGHAI: Japanese rubber futures fell on Tuesday, paring the previous session’s gains, as oil prices slipped after the US president signalled that the Iran war could end soon, while rising supply expectations from key producers also added pressure.

The Osaka Exchange (OSE) rubber contract for August delivery fell 5.1 yen, or 1.34percent, at 374.9 yen (USD2.38) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 55 yuan, or 0.32percent, to 17,115 yuan (USD2,487.54) per metric ton. The most active April butadiene rubber contract on the SHFE fell 555 yuan, or 3.58percent, to 14,935 yuan per metric ton.

Oil prices fell on Tuesday after hitting their highest level in more than three years in the prior session as US President Donald Trump predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to global oil supplies. Natural rubber often follows oil prices as it competes with synthetic rubber, which is made from crude oil.