Sept. 20 (Bloomberg) -- Rubber pared a weekly advance as a drop in oil reduced the appeal of the commodity as an alternative to synthetic products used in tires.
The contract for February delivery on the Tokyo Commodity Exchange lost 0.5 percent to settle at 283.9 yen a kilogram ($2,855 a metric ton). The drop pared gains to 4.4 percent for the most-active contract this week.
West Texas Intermediate headed for a second weekly loss as Libya’s oil output increased and as Syrian President Bashar al- Assad said he will provide inspectors access to chemical-weapons facilities. Iranian President Hassan Rohani said in an interview with a U.S. television network that his country would never seek nuclear weapons and he had full authority to resolve issues surrounding the nation’s nuclear program.
“Geopolitical tensions in the Middle East are easing, putting a drag on the energy market,” said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo. “Rubber tracked losses in oil futures.”
Thai rubber free-on-board remained unchanged at 83.20 baht ($2.69) a kilogram today, according to the Rubber Research Institute of Thailand. Farmers unhappy with low rubber prices continued blocking a road in the southern Thai province of Nakhon Sri Thammarat in a protest against the government, according to Viroj Jivarungsan, the province’s governor, said by phone today.
The Shanghai Futures Exchange is closed today for holiday.
--With assistance from Supunnabul Suwannakij in Bangkok. Editors: Jarrett Banks, Ovais Subhani