Asia's naphtha price and cracks were both at their highest in about a week on Monday, but the rally could run its course soon as traders were not convinced that supplies were as tight as they seemed.

Cracks have been climbing since March 16, with nearly an 11% surge on Monday, but traders said bulls were focusing too much on supply disruptions in Japan after the March 11 earthquake that shattered the country.

"Naphtha will be weaker. Japanese refineries will run at maximum rates due to shortages of petroleum products," said a North Asian trader.
"And due to power shortages, if Japan were to choose, they will give priority to refineries rather than crackers."

Malaysian Titan bought spot volumes for second-half April arrival, but no other details were available, although some traders had estimated it would be around $7/ton to Japan spot quotes on a cost-and-freight (C&F) basis.

Gasoline cracks were also at their highest in a week, supported by Japan's and Southeast Asian demand.

But current levels at less than $4.50 a barrel were still below January's average at nearly $7.60 a barrel and February's average at around $5 a barrel.

Vietnam's 130,500 barrel-per-day (bpd) Dung Quat refinery will be idled for two to three weeks' maintenance starting on Wednesday.