Asia's naphtha crack eased to a two-session low of $40.65 a tonne on Wednesday as strong demand was countered by a high Brent crude price and weakening gasoline fundamentals. South Korea's Hanwha Total, Singapore's PCS and Taiwan's Formosa were seeking naphtha for March, traders said. Hanwha Total may have paid a premium higher than its most recent purchases made on Jan. 21 but this could not be directly confirmed.

The petrochemical maker had on Jan. 21 bought cargoes for first-half March arrival at premiums of $2 to $3 a tonne to Japan quotes on a cost-and-freight (C&F) basis. Formosa, Asia's top naphtha importer, and PCS are expected to award their tenders from Thursday. The gasoline crack fell to a discount of 63 cents a barrel versus a discount of 46 cents in the previous session due to oversupply.

Gasoline inventories at key trading, storage and refining hubs remain at high levels. India's Reliance Industries sold a naphtha cargo of long-range vessel size for March 11-15 loading from Sikka at premiums seen in the high teens per tonne level to Middle East quotes on a free-on-board (FOB) basis.

This could not be confirmed. Qatar Petroleum has signed a five-year sales agreement to supply Japan's Marubeni Corp with an annual 200,000 tonnes of light naphtha from January 2019, the Doha-based company said. Kuwait Petroleum Corp (KPC) had separately renewed a 12-month contract starting in April this year to supply its Asian buyers with full-range naphtha at a premium of $10.50 a tonne to Middle East quotes on an FOB basis and light grade at a premium of $12.

Copyright Reuters, 2019