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Tokyo Commodity Exchange (TOCOM) futures rose to a nearly 1-month high on Tuesday on speculation that soaring oil prices triggered by attacks on Saudi crude facilities would boost synthetic rubber prices, which may bolster natural rubber prices. The benchmark TOCOM rubber contract for February delivery finished 2.4 yen, or 1.4%, higher at 173.0 yen ($1.6) per kg, after touching the highest since Aug. 19 of 173.9 yen earlier in the session.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 10 yuan to finish at 12,060 yuan ($1,701) per tonne. China's new technically specified rubber (TSR) 20 futures contract was last down 20 yuan at 10,255 yuan per tonne. TOCOM's TSR 20 futures contract for March delivery closed up 17.8 yen, or 12.6% at 159.0 yen per kg, hitting the highest since June 28.

The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 135.2 US cents per kg, up 0.7%. Oil ended nearly 15% higher on Monday, with Brent logging its biggest jump in over 30 years amid record trading volumes, after an attack on Saudi Arabian crude facilities cut the kingdom's production in half and fanned fears of retaliation in the Middle East.

Oil prices declined on Tuesday, although the market remains on tenterhooks over the threat of a military response to attacks on Saudi Arabian crude oil facilities that halved the kingdom's output and prompted a price spike not seen in decades.

Copyright Reuters, 2019


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