Rubber Market Ends Mixed Amid Falling Crude Oil Prices

By Muhammad Fawwaz Thaqif Nor Afandi and Abdul Hamid A Rahman

KUALA LUMPUR, Jan 16 (Bernama) -- The Kuala Lumpur rubber market ended mixed, pressured by falling crude oil prices and the downward momentum in regional rubber futures, a trader said.

He said oil prices dropped on Friday, extending the earlier losses on easing supply concerns following a reduced likelihood of a United States (US) strike on Iran.

Yesterday, Oxford Economics graduate economist Jack Reid told Bernama that Brent crude prices are expected to face sustained downward pressure throughout 2026, with prices projected to end the year at around US$57 per barrel, as additional supply enters a global oil market that is already in surplus.

Also weighing on sentiment were an anticipated slowdown in China’s gross domestic product data and heightened global political tensions weighed on sentiment, the trader said.

“China's growth is expected to slow to 4.5 per cent in 2026-2027, increasing pressure for stimulus to address structural weaknesses,” he said.

However, losses were limited by a softer ringgit against the US dollar and concerns over raw material shortages due to the rainy season in major producing countries, he noted. 

According to him, market sentiment was also supported by positive US economic data and optimism for additional Chinese stimulus.

“US jobless claims fell to 198,000 last week, signalling continued strength in the labour market,” he said.

At 3 pm, Standard Malaysian Rubber (SMR) 20 fell 4.5 sen to 748 sen per kilogramme (kg), while latex-in-bulk remain unchanged at 576 sen per kg.

-- BERNAMA