Analysts predict that there will be a shortage in the supply of natural rubber in the future. This is not only the case because the demand for rubber is increasing in Asian and Pacific countries, but because as the top natural-rubber The cost of synthetic rubber is directly related to the cost of oil production. Since these rubbers are petroleum-based, they fluctuate with the costs of oil. Factored into this is also the cost of transportation, as well as fuel surcharges. Overall, the prices of synthetic rubber tend to be stable because the producers of these products are also their consumers, meaning that it is a so-called “captive product.” But synthetic rubber is sold to non-producers, and the prices are dependent upon market conditions. These companies also tend to focus many of their expenses on research and development, which leads to the creation of new types of commercial rubbers, refinement of production technologies, and improvements in product quality, all of which can lead to reduced costs of production. Synthetic rubbers dominate the market, and the producers of synthetic rubbers are able to engage in far-more self-regulation. For example, when demand decreases, these producers are able to simply reduce the supply, which will stabilize the costs once again; there will likely always be a gradual rise in stocks. But recently, due to poor economic conditions, prices of synthetic rubber have continued on a downward trend. For example, the price of SBS rubber is $20,500/ton, down $950 from its last pricing. But these prices have been supported by the recovery of crude oil prices since mid-year.