Trump’s deal with putin on the supply of Russian diesel did not help lower fuel prices in the US – WSJ
Kyiv • UNN
After Trump’s deal with putin, a gallon of diesel in the US rose to $6.35. Experts doubt its impact due to the small supply volumes.
The agreement between U.S. President Donald Trump and Russian dictator vladimir putin on the supply of Russian diesel fuel had virtually no impact on the American fuel market. Despite the announced deliveries, diesel prices in the United States continued to rise. The Wall Street Journal reports this, writes UNN.
Details
According to the publication, after the agreement was announced, the average price of a gallon of diesel fuel in the United States rose by 7 cents to $6.35.
On October 9, Trump said that russia had agreed to supply more than 300,000 tonnes of diesel to the American and global markets. In addition, he announced the delivery of another 500,000 tonnes in November and one million tonnes thereafter.
Analysts doubt the effectiveness of the agreements
Last week, a tanker carrying approximately 300,000 barrels of diesel fuel departed from the Russian port of Primorsk. The vessel was initially bound for New York, but later changed its destination to "for orders," meaning that no specific unloading port was indicated.
Experts doubt that the agreement between Washington and moscow will be able to significantly affect fuel prices. They cite the condition of Russian oil refineries and the existing restrictions on petroleum product exports among the main obstacles.
In addition, the planned delivery volumes remain relatively small. According to analysts' estimates, they will amount to slightly more than 100,000 barrels per day in October and about 125,000 in November.
By comparison, just a year ago, russia exported approximately 800,000 barrels of diesel fuel per day.
Thus, even the implementation of the agreements announced by Trump does not guarantee lower prices at American gas stations, as the volumes of Russian exports are significantly below previous levels.