Oil Report

Tokyo rubber falls back after higher open

TOKYO, June 28 (Reuters) - Tokyo rubber futures fell back on Monday after the new key January contract opened at a two-week high, but a weak yen and sluggish oil prices lent support.

* The key Tokyo Commodity Exchange rubber contract for January delivery <0#JRU:>, which debuted on Monday, was trading at 335.7 yen per kg at 0123 GMT, compared with the opening price of 337.1 yen.

* The opening price was the highest for a benchmark contract since July 15.

* The dollar extended its gains to hit a one-month high above 108.00 yen JPY= on Monday, rising in light of upbeat readings on a number of U.S. economic data. It climbed to 108.02 yen on trading platform EBS, the highest since late June.

* Oil held steady at a seven-week low of about $123 a barrel, and analysts said geopolitical tensions were being overshadowed by worries about slowing oil demand.

* Traders have said they see an improvement in physical rubber supplies, although they were not back to usual levels. (Reporting by Miho Yoshikawa; Editing by Hugh Lawson)