Average US diesel prices have risen by 7 cents since US President Donald Trump reached a deal with Russia on diesel supplies.
Source: The Wall Street Journal
Details: According to the American Automobile Association (AAA), the average price of a gallon of diesel in the US reached US$6. 35 on Wednesday 28 October (about US$1. 68 per litre), up from US$6. 28 per gallon when Trump announced the deal.
On 9 October, Trump wrote that Russia was expected to supply more than 300, 000 tonnes of diesel to US and global markets in October, a further 500, 000 tonnes in November, and another 1 million tonnes immediately afterwards.
However, the newspaper reported that analysts remain sceptical that the deal will help bring down high diesel prices in the US and worldwide.
Experts also say Russia may be unable to export the promised volumes of diesel because of the poor condition of its oil refineries and export restrictions.
Even if Russia manages to do so, the promised volumes would cover only a fraction of the global shortfall. They amount to just over 100, 000 barrels per day in October and around 125, 000 barrels per day in November. In 2025, Russia was able to ship around 800, 000 barrels per day.
Background: On 22 October, the first tanker carrying 40, 000 tonnes of Russian diesel set sail for New York. The vessel is expected to arrive in the US on 7 November. Two more tankers were subsequently added. One of the three tankers is under sanctions imposed by the EU, the UK and Canada.
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