SINGAPORE: Japanese rubber futures rose by about 1% to close above the 300-level mark on Tuesday, supported by gains in crude oil prices and weather concerns in top rubber producer Thailand.

The Osaka Exchange (OSE) rubber contract for August delivery closed up 3.2 yen, or 1.07%, at 302.6 yen ($2.01) per kg, logging a two-day high. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 220 yuan to finish at 13,965 yuan ($1,940.20) per metric ton.

Oil prices mostly held onto gains made a day earlier amid attacks on shipping in the Red Sea that have exacerbated supply worries. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Thailand’s meteorological agency has warned of summer storms in upper Thailand from March 1-3, potentially causing crop damage.