President Donald Trump announced October 9 that Russia agreed to release millions of tons of diesel fuel to U.S. and global markets following discussions with Russian President Vladimir Putin. The U.S. Treasury Department separately announced that it would immediately issue a temporary sanctions license permitting Russian diesel supplies, according to Bloomberg.
- Trump said Russia would immediately supply more than 300,000 tons of diesel, followed by another 500,000 tons in November and 1 million tons thereafter.
- Trump also announced a subsequent delivery of 3 million tons, contingent on the condition of Russian refineries.
- Three million tons of diesel is equivalent to approximately 22.5 million barrels, according to Bloomberg.
- U.S. diesel futures fell to approximately $4.67 per gallon following the announcement.
- The U.S. last imported Russian diesel in March 2022, according to Energy Information Administration data.
- Russia has restricted diesel exports amid refinery disruptions and efforts to maintain domestic supplies.
Relevant Companies
- Valero Energy ($VLO) - U.S. diesel refiner exposed to changes in global diesel prices and refining margins.
- Marathon Petroleum ($MPC) - Major U.S. refiner whose diesel operations are exposed to fuel price movements.
- Phillips 66 ($PSX) - Refining operations exposed to changes in diesel supply and pricing.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
