On Monday, Asia’s spot differentials for high sulphur fuel oil (HSFO) weakened amid declining crude oil benchmarks and a lack of window trades for the second consecutive session. Market activity showed no bids for the 180-cst grade of HSFO against three offers. Although several bids and offers for the 380-cst grade were present, no deals materialized, according to market participants. The cash differentials for 180-cst HSFO dropped by 25 cents, reaching a discount of $3.20 per ton.
Similarly, the differentials for very low sulphur fuel oil (VLSFO) decreased to $5.70 per ton, a fall from $5.95 during the previous session. The cash differential for the 380-cst grade also declined by 15 cents, settling at 85 cents per ton on Monday. In other news, U.S. energy companies are exploring opportunities to construct natural gas pipelines aimed at harnessing the shale formations in Appalachia, particularly in Pennsylvania, Ohio, and West Virginia. This interest is bolstered by President Donald Trump’s pro-energy policies and the anticipation of rising demand for natural gas in the coming years.
Additionally, President Trump criticized Japan for engaging in “unfair” automobile trade practices with the United States. He suggested that Japan should increase its imports of American energy resources and other goods as a means to help alleviate the U.S. trade deficit. In terms of window trades, there were no trades for the 180-cst and 380-cst HSFO, while one trade was recorded for the 0.5% VLSFO.