Rubber futures hit highest in more than a year as oil supports bullish mood

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NEW DELHI (Feb 27): Rubber futures climbed to the highest in more than a year on optimism over producer measures to support prices and the outlook for demand, while a gain in petroleum costs gave an extra fillip to the market.

“Firmer crude prices are supporting natural rubber,” says Gu Jiong, an analyst at Yutaka Shoji, a broker in Tokyo. Crude oil rose the most in a week after an industry report signaled a surprise drop in U.S. inventories, and Russia confirmed it’s cutting output in line with an agreement by OPEC and its allies.

RSS rubber for August on Tokyo Commodity Exchange +0.9% to close at 200.80 yen/kg, highest for most active contract since Jan. 2018.