Rubber Retreats on Supply & Demand Expectations, Oil Remains Flat
Rubber fell today on speculations that supply is growing, while demand is falling. China’s economy shows signs of slowdown continuously, signaling that demand for raw materials in the second biggest economy would wane. China contributes 33 percent to global consumption of rubber. Some analysts claim that it is not time to become too bearish as demand may yet return. January futures for delivery of rubber slid as much as 1.8 percent to 217 yen per kilogram ($2,730 per ton) before trading at 219.40 yen in Tokyo today.
Oil was flat as good and bad news from Europe negated each other. On the negative side, the Bundesbank criticized the bond buying plan of the European Central Bank. On the positive side, Greece promised that it would reach the bailout terms. September contract for delivery of crude oil slipped $0.04 to $95.97 on NYMEX today. Brent crude closed at $96.11 per barrel on ICE today, following the drop from $96.27 to $95.02.
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