Trump reaches deal with Russia on diesel supplies to the U.S. to lower fuel prices

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Trump reaches deal with Russia

Russia plans to supply up to 36 million barrels of fuel

Under the announced schedule, the first 2.25 million barrels are expected to arrive in October, followed by 3.75 million in November and 7.5 million in December. Russian Deputy Prime Minister Alexander Novak confirmed Moscow's readiness to supply the specified volumes.

Trump also raised the possibility of additional deliveries totaling 3 million metric tons of diesel, equivalent to approximately 22.5 million barrels. Whether these shipments proceed will depend on the condition of Russian oil refineries.

Since July, Russia has restricted diesel fuel exports amid Ukrainian strikes on its refining infrastructure. Moscow is now moving to lift the restrictions ahead of schedule, TASS reported, citing Novak.

However, market participants doubt that Russian producers will be able to meet the announced schedule. TD Securities senior strategist Ryan McKay identified the condition of Russia's refineries as the main obstacle to deliveries.

In his assessment, even if the agreement is fulfilled, its impact on prices could be limited. CIBC Private Wealth Group trader Rebecca Babin also warned that some of the promised volumes might not reach the market on time.

Ukraine and Democrats criticize the agreement

Ukrainian President Volodymyr Zelenskyy opposed the easing of restrictions on Russian fuel, arguing that additional revenue would allow Moscow to continue its war.

"Gifts to Putin will bring neither peace nor any benefit to the civilized world," Zelenskyy wrote on X.

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He stressed that allowing Russian petroleum products to be sold effectively amounts to financing the continuation of hostilities.

Senate Democratic leader Chuck Schumer also condemned the administration's decision. In his view, Trump is attempting to improve his political standing amid high diesel prices.

Against this backdrop, the U.S. president announced that he would refrain from new strikes against Iran until the congressional midterm elections. The decision followed his earlier warnings about a possible resumption of military operations.

Meanwhile, restrictions on shipping through the Strait of Hormuz remain in place, and disagreements over Iran's nuclear program remain unresolved. The risk of further disruptions to energy supplies therefore persists, even with a temporary reduction in the threat of military escalation.

Earlier, we reported that Trump ordered a review of statements made by Federal Reserve Governor Lisa Cook. The initiative came amid disagreements between the White House and the Fed over monetary policy.

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