Key facts
- Russia will send its first tanker with 40,000 metric tons of diesel to the US on Thursday.
- Analysts doubt the deal will significantly lower prices due to small volumes and global supply issues.
- Russia's refining capacity is estimated to be up to 45% offline.
- Global diesel and gasoil demand disruptions reached 1.3 million barrels per day in September.
Russia will dispatch its first tanker with 40,000 metric tons of diesel to the United States on Thursday, according to Deputy Prime Minister Alexander Novak. The shipment follows Russia's decision to lift its self-imposed ban on diesel exports, which was introduced to tackle domestic shortages. President Donald Trump stated that Russia would immediately export 300,000 metric tons, followed by larger volumes in subsequent months, aiming to alleviate high fuel prices.
Analysts, however, believe the deal is unlikely to significantly impact global prices due to insufficient volumes and logistical challenges. They estimate that substantially more supply is needed to ease current market conditions. Russia's ability to meet the promised export volumes is further questioned due to an estimated 45% of its refining capacity being offline and rising freight costs amid security risks.