Russia says diesel export accord lowers U.S. fuel prices

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Russia diesel export lowers US prices

Highlights

Russia has begun implementing an accord to export diesel to the U.S., which Lavrov claims is already lowering U.S. fuel prices.
President Donald Trump announced on October 9 that Russia would export 2.25 million barrels immediately, 500,000 metric tons in November, and 1 million tons thereafter, with U.S. sanctions on Russian fuel temporarily lifted.
U.S. diesel futures prices dropped about 11% since the deal, but Ukrainian attacks on Russian refineries have caused fuel shortages in at least six Russian regions.

Diesel supply plan and market response

As reported by Reuters, citing Kommersant, Russian Foreign Minister Sergei Lavrov says the accord allowing Russian diesel exports to the U.S. and world markets is already working and lowering prices. Writing in the Moscow daily, Lavrov says Russia has begun implementing the arrangement and presents it as part of Moscow's broader role in supporting global energy security.

Lavrov says Russia differs from Western countries by not using its economy to score political points against adversaries or competitors. He writes that Russia has supplied Europe with energy resources worth $320 billion since 2022 and describes the diesel arrangement as an important contribution to energy security.

U.S. President Donald Trump announced on October 9 that Russia would immediately export 300,000 metric tons, or 2.25 million barrels, to the U.S. and global markets, followed by 500,000 tons in November and 1 million tons immediately thereafter. The Trump administration also temporarily lifts U.S. sanctions on Russian fuel, which had been intended to deprive Moscow of revenue for its war on Ukraine.

War-related pressures on fuel markets

Lavrov says Russia is working to stabilize world energy markets while ensuring global energy security and balanced development across countries and macro-regions. He does not provide data on diesel prices, though U.S. futures prices have fallen about 11% since the deal was announced.

At the retail level in the U.S., diesel prices were at a record high last week when Americans voted, according to GasBuddy. The wider market backdrop remains volatile as Lavrov says Ukraine is ignoring Trump's calls to halt strikes on Russian energy targets, while Ukrainian President Volodymyr Zelenskiy says Kyiv's forces are continuing their attacks.

Russian media say fuel shortages have returned to at least half a dozen Russian regions after Ukrainian strikes hit at least eight major oil refineries in the past two weeks. That damage underlines how wartime disruptions inside Russia are still shaping supply conditions even as new exports are directed toward overseas markets.

Earlier, we reported that the Esteem Explorer’s late-November U.S.-to-Japan voyage was priced at $81 million as tanker rates spiked.

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