Malaysian Rubber Market Faces Uncertainty Amid Oil Price Volatility
The Malaysian rubber market is expected to remain range-bound next week, with a slightly lower bias amid ongoing uncertainty in global oil prices and geopolitics. The conflict in West Asia continues to disrupt commerce and industry, causing crude oil prices to rise by about four percent to $94.20 per barrel.
Industry expert Denis Low notes that higher oil prices are driving up costs for rubber producers, making it essential to monitor volatility in crude oil prices and the US dollar. 'The acute volatility represents uncertainties and may warrant caution and fear at the same time,' he said.
The supply of rubber is also being affected by sporadic thunderstorms and heavy rains in certain regions, although conditions have not been severe enough to significantly disrupt supply. The Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) fell 5.0 sen to 958.5 sen per kilogramme last week.