SINGAPORE: Japanese rubber futures rose on Thursday, as raw material and oil prices strengthened.

The Osaka Exchange rubber contract for August delivery was up 5.2 yen, or 2.0%, at 262.1 yen ($2.28) per kg as of 0143 GMT.

Thai rubber sheet prices hit 73.95 baht ($2.29) per kg on Wednesday, their highest since May 2021.

Oil prices gained more than $1 on Thursday, trading below seven-year highs hit earlier this week, as fresh developments on the Russia-Ukraine crisis sparked concerns that supported prices.

Synthetic rubber is derived from crude oil, and higher oil market serves as a driver for natural rubber prices as well. Natural rubber market also benefits from stronger oil prices, as that could lead to a shift from synthetic rubber.

The rubber contract on the Shanghai futures exchange for May delivery was up 10 yuan, or 0.1%, at 14,040 yuan ($2,221.80) per tonne.

The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 180.5 US cents per kg, down 2.4%.