RUBBER — Japan futures ease tracking softer oil, set for weekly decline

By Emily Ou Yong Sept 18 (Reuters) — Japanese rubber futures eased on Friday and were headed for a weekly loss, pressured by lower oil prices for a third straight session, even as Thai physical prices held firm. The Osaka Exchange (OSE) rubber contract for February delivery was down 1.8 yen, or 0.42%, at 426.1 yen ($2.73) per kg as of 0155 GMT. The contract has lost 1.14% so far this week. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 175 yuan, or 0.92%, to 18,745 yuan ($2,798.39) per metric ton. The most active October butadiene rubber contract on the SHFE lost 275 yuan, or 1.84%, to 14,690 yuan per metric ton. Oil prices fell about 1%, extending losses for a third session, but stayed above $100 on Friday, as hopes of alternate ways for barrels from the Middle East to reach markets outweighed concerns about strikes between Saudi Arabia and Yemen's Houthis. O/R Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Thai latex and cup lump prices have been relatively strong recently, with upstream processing plants holding low inventories and showing a strong wi