KUALA LUMPUR: The Malaysian rubber market posted minor gains on Tuesday as oil prices rebounded amid worries about a loss of supply.
The supply concerns were due to a warning by the Organisation of the Petroleum Exporting Countries (OPEC) that it would be impossible to replace the possible loss of seven million barrels per day of oil and other liquids exports from Russia.
A dealer said gains in the domestic rubber market were capped by news from China where sales of automobiles shrank by 11.7 per cent in March, the first decline in three months following the rising COVID-19 cases in the country.
The Association of Automobile Manufacturers reported that vehicle sales totalled 2.23 million units in March.
In addition, market operators are keeping an eye on US inflation data this week, which could foreshadow even aggressive interest rate hikes from the US Federal Reserve.
The Malaysian Rubber Board's (MRB) price for Standard Malaysian Rubber 20 (SMR 20) and latex-in-bulk gained 0.5 sen to 725.00 sen a kilogramme (kg) and 676.00 sen per kg, respectively.
At 5 pm, the MRB closing price for SMR 20 stood at 725.50 sen per kg while latex-in-bulk was at 677.00 sen per kg.