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US President Donald Trump has stepped up his efforts to lower US diesel prices by lifting sanctions on Russian diesel exports and announcing a ceasefire on energy infrastructure between Russia and Ukraine.<\/strong><\/p>\n Soaring US diesel prices are hurting US truckers and farmers, and are a concern for voters and political parties ahead of November 3 midterm elections.<\/p>\n HOW MUCH DIFFERENCE WILL RUSSIA\u2019S RELEASE MAKE?<\/strong><\/p>\n Trump said on Friday that Russia will immediately supply \u200cmore than 300,000 metric tons (2.25 million barrels) of diesel to US and global markets.<\/p>\n That is less than a day\u2019s supply for the US transport sector alone, according to US Energy Information Administration data, which shows daily use of around 2.94 million barrels per day.<\/p>\n Trump said Russia would supply another 500,000 tons in November and a further 1 million tons \u201cimmediately thereafter\u201d, which is less than four \u200bdays\u2019 demand for US transport.<\/p>\n WHAT HURDLES MIGHT THERE BE?<\/strong><\/p>\n The US has lifted sanctions on Russian diesel exports, but it remains unclear<\/p>\n what tankers could be \u200bused to export the fuel given sanctions on many, and what the condition is of Russian refineries given recent Ukrainian attacks \u2060on them.<\/p>\n HOW MUCH CAN RUSSIA EXPORT?<\/strong><\/p>\n Russia was capable of exporting about 100,000 tons of diesel per day prior to Ukrainian drone attacks on refineries that began in \u200b2024.<\/p>\n In light of damage to its refineries, Russia banned diesel exports from July to meet domestic demand and extended that ban to countries without bilateral agreements until October 31, \u200bwhile sustaining steady exports to \u201cfriendly\u201d states, mostly in Central Asia.<\/p>\n If Ukraine halts attacks on Russian refineries, Russia would be capable of meeting the initial request from Trump for 300,000 tons of diesel exports, according to industry sources.<\/p>\n Russia could produce 300,000 tons of diesel this month if a large oil refinery hit by drones in the European part of the country were to restart, the sources said.<\/p>\n WILL \u200bMORE DIESEL EXPORTS HELP RUSSIA\u2019S ECONOMY?<\/strong><\/p>\n According to Russian President Vladimir Putin, Ukrainian strikes on oil refineries cost Russia\u2019s economy 1% of gross domestic product, which is around $26.6 \u200bbillion, according to Reuters calculations.<\/p>\n Exports of 300,000 tons of diesel would fetch roughly $400 million, of which a small portion would go to Russia\u2019s state budget. Russia taxes mostly oil output, not \u200coil and \u2060fuel exports.<\/p>\n Russia has around 30 large oil refineries, while none are functioning in Ukraine.<\/p>\n WHAT\u2019S BEEN THE REACTION TO TRUMP\u2019S ANNOUNCEMENTS?<\/strong><\/p>\n Moscow said on Saturday it had partially lifted the ban on diesel exports in place since July with immediate effect. US lawmakers also criticised the move, including one of Trump\u2019s fellow Republicans, Representative Don Bacon, who said it was time to apply more sanctions that Congress had recently \u200bpassed, not lift them.<\/p>\n British Prime Minister Andy \u200bBurnham said his country would strengthen its \u2060sanctions on Russia. German Foreign Minister Johann Wadephul restated Berlin\u2019s support for Ukraine\u2019s leader after Trump called for his removal, and called for more pressure to be put on Russia to resume peace talks.<\/p>\n The Kremlin said on Monday the talks were continuing \u200bon the ceasefire, while declining to comment on whether that is related only to oil refineries.<\/p>\n CHINA\u2019S IMPACT ON DIESEL<\/strong><\/p>\n China is \u200bset to resume refined fuel \u2060exports after a brief halt during the Golden Week holiday, Reuters reported. WHY HAVE DIESEL PRICES BEEN SO TIGHT?<\/strong><\/p>\n In addition to Russian export challenges, the Iran \u2060war has \u200bcurbed supply from Gulf producers.<\/p>\n IEA SPURRING MORE SUPPLY<\/strong><\/p>\n The Group of Seven nations agreed recently to release fuel from \u200btheir strategic reserves, coordinated by the International Energy Agency.<\/p>\n The 32-nation IEA coordinated the world\u2019s largest emergency stocks release in March of over 400 million barrels of crude oil and products, and has recently prodded participating \u200bcountries to offer any unreleased volumes to market.<\/p>\n<\/div>\n
Ukraine\u2019s President Volodymyr Zelenskiy said Trump\u2019s diesel supply deal with Russia would embolden Moscow\u2019s attacks on Ukraine and cost more lives.<\/p>\n
However, its approved October exports of diesel, gasoline and jet fuel, at around 3.7 million metric tons, are down sharply from a year earlier and lower than the more than 4 million approved for September.<\/p>\n