Oil prices edged higher on
expectations that OPEC will extend an output cut agreement, while investors
awaited a meeting between the United States and China that could produce a
breakthrough on trade talks. The OPEC meeting will follow the G20 summit this
weekend.
For the second time in seven months, a
gathering of the leaders at G20 meeting will be eclipsed by a sidelines meeting
between Donald Trump and Xi Jinping, who will try to revive their countries’
stalled trade negotiations.
The U.S. and China appear to be making
progress on trade talks ahead of the G20 meeting, but if the U.S. and China
cannot come to an agreement and the trade fight escalates, oil prices could
plunge to $30 per barrel, according to Bank of America Merrill Lynch. That is
because the Trump administration has threatened to impose tariffs on $300
billion worth of Chinese imports, which would cover just about every Chinese
good coming into the country. The economic pain on the global economy would be
substantial.
U.S. President Donald Trump
said he would be talking about trade with Indian Prime Minister when the two
leaders sit down for a bilateral meeting on the sidelines of G20 summit meeting
on Friday.
The
benchmark RSS4 grade rubber closed at `.151 a kg at
Kottayam, while RSS3 grade closed at `.140.83 a kg
at Bangkok and Malaysian SMR20 closed at `.103.77 a
kg. On ICEX, July 2019, the futures closed at `.150.84 a
kg, August at `.145.52, September at `.147.69, October
at `.149.16, November at `.150.66 and December
closed at `.152.16 a kg. Tokyo Commodity Exchange July 2019 futures
series closed at ¥234.5 a kg, August at ¥233.5, September at ¥221.9, October at
¥208.2, November at ¥199.2 and the contract for delivery in December 2019
closed at ¥194.6 a kg. On Friday, most probably Tocom futures contract for
delivery in December may trade in the range of ¥189 & ¥195 a kg.
