SINGAPORE: Asia's naphtha crack edged higher on Monday, but stayed within close sight of a multi-week low touched last week, weighed down by expectations for surging near-term supplies arriving from the West.
Asia is expected to see at least a 25% jump in western naphtha supplies next month as traders have boosted US shipments expecting higher demand from Asia as three new crackers in South Korea and China are starting operations in June and July.
The naphtha crack inched up to $90.88 per tonne on Monday, up from $90.07 per tonne on Friday. The crack has shed about 15% in the last two weeks.
Asian gasoline crack rose by 14 cents to $5.30 per barrel on Monday, but traders remain concerned the market would likely remain under pressure in the short term as refineries returning from seasonal turnarounds would add to regional supplies.
Commodity merchants and investment firms such as Citadel, Gunvor GGL.UL and Trafigura TRAFGF.UL are bolstering US teams that specialize in trading renewable fuels as demand soars, according to people familiar with the matter.
Oil prices edged higher on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could lead to a resumption of crude supplies from the OPEC producer.
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