Former President Donald Trump announced an agreement with Vladimir Putin to supply 4.8 million tons of Russian diesel to global markets. This volume is equivalent to approximately 36 million barrels. The delivery schedule includes an immediate shipment of over 300,000 tons, followed by 500,000 tons in November, and a final batch of 3 million tons contingent on the status of Russian refineries.
Following this announcement, the US Treasury Department's Office of Foreign Assets Control issued a temporary general license to permit these supplies. This move comes as Russia continues to enforce a diesel export ban, which is currently scheduled to remain in effect until October 31. The ban was originally implemented in July following drone strikes on Russian refinery infrastructure.
Market reaction was immediate, with US crude prices falling by approximately 1% before partially recovering. Prior to this development, the G7 nations agreed to release 100 million barrels from their emergency reserves. According to AAA data, US diesel prices reached $6.28 per gallon on Thursday, marking a 71% increase compared to the previous year.
