Kuala lumpur: The Kuala Lumpur rubber market closed higher today, bolstered by gains in regional rubber futures markets and rising crude oil prices, a dealer reported. Japanese rubber futures experienced an uplift due to stronger crude oil prices and a tightening supply outlook.

According to BERNAMA News Agency, market sentiment improved further due to concerns about impending rubber supply declines in Thailand and Indonesia. Rubber supply growth is projected to remain weak next year because of limited new plantings in Thailand and other major producing countries. Additionally, Indonesia's shift from rubber cultivation to higher value-added crops such as oil palm and durian is expected to lead to a decline in rubber production in the world's second-largest rubber-producing country.

At the time of writing, Brent crude oil prices increased by 2.21 percent, reaching US$60.22 per barrel. However, the dealer noted that further gains were tempered by increased uncertainty regarding the United States economy. US business activity growth slowed in December, reaching the weakest pace since June, with new orders declining for manufacturers and service providers, marking a year of volatility and uncertainty for the American economy.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 increased by 10.5 sen to 734 sen per kilogram, while latex-in-bulk rose by 2.5 sen to 579 sen per kilogram.