He also announced that Russia and Ukraine had agreed to stop attacks on each other’s energy facilities. Oil prices slipped on Monday as markets weighed the possibility of more Russian diesel supplies. These developments raised hopes that fuel supplies could improve and ease some pressure on prices.
US President Donald Trump said Russia would supply additional diesel to the US and global markets.
Two reported maritime incidents have added to concerns over oil shipments. The United Kingdom Maritime Trade Operations reported the incidents, according to Reuters. However, analysts questioned whether the deal could quickly increase available supplies. This could limit how much additional diesel the country can produce and deliver in the short term, as quoted by Reuters. Russia has also partially relaxed its diesel export restrictions. Trump’s energy ceasefire announcement has raised hopes of fewer attacks on energy infrastructure. The International Energy Agency has called for countries to review their diesel supplies. A tanker was struck by a drone near Sohar in Oman, while another vessel was damaged while travelling through the Strait of Hormuz.
Trump’s diesel deal could bring 2.25 million barrels of additional supplies to the market. On Friday, Trump said Russia would immediately supply more than 300,000 metric tons of diesel, equivalent to around 2.25 million barrels, to the US and global markets . Moscow has allowed 500,000 metric tons of diesel, equivalent to around 3.7 million barrels, to enter the international market. Varga said this volume was roughly equal to one day of US diesel consumption and around 13% of global demand.
Because russia’s refining capacity had been severely reduced, pVM analyst Tamas Varga said the immediate impact of the deal was uncertain.
He added that more supplies would follow later, according to Reuters. However, Ukrainian President Volodymyr Zelenskiy said he was still waiting for details of the agreement, while Russia had not commented on the announcement, according to Reuters. IEA chief Fatih Birol said all member countries should assess whether additional diesel releases were needed.
He also urged countries that had not fully delivered their previously pledged supplies to speed up the remaining releases, with priority given to diesel. On Sunday, Trump unexpectedly announced that Russia and Ukraine had agreed to stop attacking each other’s energy facilities.
