SINGAPORE: Asia's naphtha crack edged up by about 2 percent to reach a three-session high of $52 a tonne on Monday after falling to a two-month low in the previous session.
But traders said supplies remained ample.
Lower incoming Western cargoes were being offset by high refinery runs in Asia, causing the glut to persist, they said.
"We are still generally bearish. Gasoline support for naphtha is not there," said a Singapore-based industry source.
Naphtha, depending on its grade, can be reformed into gasoline or used as a blending component for the motor fuel apart from being used as a petrochemical feedstock.
Demand for naphtha from the petrochemical sector in general has remained firm but Japan had shut some of its old crackers permanently as they were no longer cost effective.
Gasoline on the other hand has been battered by unrelenting high supplies and a lack of demand despite May to July usually being the peak season for petrol consumption, traders said.
The weak fundamentals have pushed Asia's gasoline crack down for the fourth straight session on Monday to reach a 2-1/2 week low of $7.20 a barrel.
SINGAPORE CASH DEALS: Hin Leong sold a 92-octane grade gasoline cargo for June 2-6 loading at $53.10 a barrel, making this the only light distillates cash deal for the session.
TERM TALKS: Some buyers have accepted Abu Dhabi National Oil Company's (ADNOC) premiums for naphtha lifting from July 2016 to June 2017 at $12 to $15 a tonne to Middle East quotes on a free-on-board (FOB) basis, traders said.
But some customers could have reduced their term volumes with ADNOC as the price was considered to be high in view of the current glut.
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