Trump's deal with Russia on diesel fuel is under threat - FT
Kyiv • UNN
Two of the three tankers carrying Russian diesel fuel changed course amid sanctions and buyers' doubts. U.S. reserves fell below 100 million barrels.
The agreement between US President Donald Trump and Russia regarding diesel fuel has come under threat as two tankers en route to the United States changed course. This was reported by the Financial Times, writes UNN.
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"Donald Trump's controversial plan to import Russian diesel fuel into the United States ahead of the midterm elections appears to be falling apart: two of the first tankers initially bound for the US suddenly veered off course," the publication says.
This apparent change of course reportedly occurred amid a further deterioration in the US diesel fuel supply situation: new data show that inventories fell below 100 million barrels for the first time in more than two decades. The supply shortage threatens to further affect fuel that is vital to the US economy.
Several weeks before the US elections, Trump reached an agreement with Kremlin head Vladimir Putin to purchase batches of diesel fuel and import them into the United States in an effort to lower prices and strengthen political support.
"These efforts appear to have done little to help Republicans: on Tuesday, Democratic Party candidates won a convincing victory across the country, gaining control of both chambers of Congress," the publication notes.
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"Two of the three Russian tankers carrying diesel fuel bound for the United States were redirected to other destinations," said Matt Smith, an analyst at Kpler.
"The third tanker, Agioi Fanendes, is due to arrive in New York this weekend. However, given the clear hesitation among American buyers due to regulatory, legal, and sanctions-related issues, it would not be too surprising if this tanker were also diverted away from the United States," the expert noted.
Jakob Meldgaard, chief executive of oil products shipping company TORM, said that the few cargoes currently loaded—and their apparent diversion—show that "even before Congress became Democratic, it appears that reintegrating Russia into the broader economy is not so simple. Even when you have an administration trying to do it."
Diesel futures prices have risen by more than 60 percent since Trump began the war with Iran. Diesel prices at US gas stations stand at $6.27 per gallon, close to the September record.