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Oil report

Tokyo rubber sinks on profit taking

TOKYO, May 8 (Reuters) - Tokyo rubber futures fell on Thursday as investors locked in profits after prices rose to a nine-week high the previous day, although strong crude oil prices were expected to provide support.

* As of 0118 GMT, the key Tokyo Commodity Exchange rubber contract for October delivery <0#JRU:> fell to a low of 304.6 yen a kilogram, down 3.5 yen or 1.1 percent.

* It rose to an intra-day peak of 308.9 yen on Wednesday, the highest level since March 6.

* U.S. crude oil futures remained robust, hovering near a record high on fears about tight global supplies of diesel fuel.

* Front-month U.S. crude for June delivery CLc1 was trading at $123.64 a barrel on the Globex electronic trading platform, up from the previous day's record high settlement of $123.53, and in sight of the new intraday peak of $123.93.

* Rubber prices often benefit from high crude oil prices because investors believe expensive oil will encourage a shift to natural rubber from synthetic rubber, a petroleum product.

* In the currency market, the dollar was little changed at 104.80 yen JPY=. (Reporting by Miho Yoshikawa)

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