Russian Diesel Reaches Global Markets After Agreement With Trump

By Atlantic Reports

Russian diesel has begun reaching international markets following an agreement with US President Donald Trump, the Kremlin said on Thursday, as Washington seeks to ease fuel prices ahead of the November 3 US midterm elections.

Kremlin spokesman Dmitry Peskov told reporters that the initial supplies could help stabilise oil markets, although he cautioned that the volumes would not be sufficient to achieve that objective on their own.

“The diesel has started reaching global markets and is expected to have a positive effect on stabilising oil markets, although it will not be enough to stabilise them,” Peskov said.

Trump said last week that Russia had agreed to supply diesel to international markets to help lower fuel prices. Moscow subsequently partially lifted its restrictions on diesel exports from October 10.

First Shipment Heads Towards Morocco

Shipping data from the London Stock Exchange Group (LSEG) indicated that Russia had resumed diesel export loadings from the Baltic port of Primorsk.

According to the data, a tanker carrying approximately 40,000 metric tonnes of ultra-low sulphur diesel was loaded on October 13 and was heading towards Morocco.

The shipment marks a resumption of export activity under the partially relaxed restrictions, although its destination does not establish that the fuel will be supplied directly to the United States.

Trump said on Friday that Russia would immediately supply more than 300,000 metric tonnes, equivalent to about 2.25 million barrels, of diesel to US and global markets.

He also announced plans for a further 500,000 tonnes in November and another one million tonnes “immediately thereafter”.

The proposed volumes would be distributed across the US and international markets, and the available information does not establish how much would ultimately reach American consumers.

Proposed Supplies Small Compared With US Demand

Data from the US Energy Information Administration (EIA) show that the country's transport sector consumes approximately 2.94 million barrels of diesel daily.

Against that benchmark, the initial 2.25 million barrels announced by Trump would amount to less than one day's transport-sector consumption in the United States, even if the entire volume were allocated to the country.

The additional shipments could provide further supplies, but their effect on prices would depend on delivery schedules, destination markets, distribution costs and prevailing demand.

The agreement comes as Trump seeks to reduce fuel costs ahead of the US midterm elections scheduled for November 3.

Ukraine and European Officials Criticise Deal

The agreement has drawn strong criticism from Ukrainian President Volodymyr Zelenskyy, European officials and some Republican politicians aligned with Trump.

Their objections come amid continuing tensions over Russia's war against Ukraine and the wider debate over European energy dependence on Russian supplies.

Moscow has rejected European criticism of the diesel arrangement as “cynical”, arguing that European countries continue to purchase some Russian oil and liquefied natural gas.

The dispute highlights the tension between efforts to secure affordable energy supplies and concerns about maintaining pressure on Russia over its war in Ukraine.

Market Impact Remains Uncertain

Although the resumption of Russian diesel exports could add supply to international markets, the scale of the price impact remains uncertain.

Peskov's assessment that the shipments would not be sufficient to stabilise oil markets points to the limits of the agreement, particularly when supplies are shared across multiple destinations.

The extent to which the arrangement lowers fuel costs will depend on the quantities actually delivered, the pace of exports and broader movements in global energy demand and supply.

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