Key facts
- Sherrill urged New Jersey port and terminal operators in a Monday letter to turn away tankers carrying Russian diesel.
- Sherrill said the state would use its legal and regulatory powers to keep the shipments from entering through New Jersey.
- Sherrill said at least one tanker carrying Russian diesel may be headed for the New Jersey coast.
- Sherrill said the Russian Oil Act does not give the president or Treasury blanket authority to waive sanctions through licenses.
- Phillips 66's Brian Mandell told analysts Russia lacks enough distillate to make much of a difference in the shortage.
New Jersey Governor Mikie Sherrill warned port and terminal operators in the state against "purchasing or unloading the illegal Russian fuel currently bound for the east coast of the United States," according to a ZeroHedge report published November 4. In a Monday letter, Sherrill urged operators to turn away tankers carrying Russian diesel and said the state would use its legal and regulatory powers to prevent the shipments from entering through New Jersey.
Sherrill said Russia has dispatched multiple diesel tankers to the United States, including at least one that may be headed for the New Jersey coast. She also argued that "The Russian Oil Act does not grant the President or Treasury Department blanket authority to waive these sanctions through licenses," and concluded that any effort to profit from the illegal trade would meet harsh penalties.
The warning follows Trump's early-October announcement of a deal with Russian President Putin to allow Russian diesel imports into the US to ease fuel prices. ZeroHedge reported that the administration acted to ease high industrial fuel prices during a global refining squeeze it said was fueled by Ukrainian drone attacks on Russian refineries and disruptions in the Strait of Hormuz.
AAA prices cited by the report put diesel at the pump at about $6.29 per gallon nationwide as of Tuesday morning, down from $6.50 weeks earlier. Brian Mandell, executive vice president of marketing and commercial at Phillips 66, told analysts on an earnings call that Russia does not have enough distillate to make much of a difference and called it "a drop in the bucket compared to how much distillate is offline."