US President Donald Trump revealed that Russia has agreed to ship millions of tons of diesel to the US market and global markets, while the US government temporarily eased some sanctions on Russian fuel exports to ease soaring domestic energy prices. Trump said Russian President Vladimir Putin agreed to ship more than 300,000 tons of diesel in the first phase, followed by 500,000 tons in November and another 1 million tons shortly after. Russia will also deliver another 3 million tons of diesel within a short period, depending on the condition of its refineries. The total volume of diesel offered amounts to about 36 million barrels. The US Treasury Department issued a temporary license allowing the sale of Russian-origin diesel on global markets and suspended some sanctions until April 2027, amid tight global diesel supply. The International Energy Agency estimates the market was short about 1.6 million barrels per day of diesel in September, while the average US diesel price rose to 6.28 dollars per gallon on Friday, October 9, from 3.68 dollars in the same period a year earlier. However, Ukrainian President Volodymyr Zelensky criticized the easing of sanctions, warning that opening the way for Russia to increase petroleum product exports would give Moscow additional resources to continue the war. Analysts also doubt whether Russia can deliver the full promised volumes, since Russian refineries have been attacked by Ukraine and Russia still faces limits on diesel exports. Andy Lipow, president of Lipow Oil Associates, expressed uncertainty about how much additional diesel could reach global markets, while Clayton Seigle, an energy security scholar at the Center for Strategic and International Studies, estimated the deal could allow Russia to export more than 100,000 barrels per day of additional diesel.
Russia to ship millions of tons of diesel (about 36 million barrels) to global markets as US temporarily eases sanctions, boosting diesel/heating oil supply and pressuring prices.
