No U.S. buyer emerges after Trump's deal on Russian diesel
Russian diesel shipments have diverted or idled at sea as buyers worry about legal and sanctions risks, despite Trump’s deal to boost supply.
- A month after President Donald Trump announced a deal with Vladimir Putin to import Russian diesel, tankers bound for the U.S. are turning back. No Russian fuel has arrived, as ships reroute to buyers in South America, North Africa, and the Middle East.
- Companies are reluctant to handle the cargo due to potential legal and reputational consequences, while lawmakers from both parties questioned the legality of Trump's sanctions exemption. U.S. oil companies fear investigations by Congress following the midterm elections.
- Tracking data from Kpler shows the Malta-flagged The Agioi Fanendes, carrying 300,000 barrels, reversed course 400 nautical miles from New York. The ship "started loitering in a zigzag pattern" before listing South America as its destination.
- New Jersey Governor and U.S. Navy veteran Mikie Sherill warned port operators of potential civil penalties for offloading Russian diesel. Sherill accused the president of "helping finance Putin's war against Ukraine," urging ports to reject the shipments.
- Ukraine's bombing campaign against Russian oil refineries has cut production by 30% since late October. Domestic refiners export more than 1.5 million barrels a day, and the U.S. does not currently need the fuel, despite prices averaging $6.16 a gallon.
67 Articles
67 Articles
With much fanfare, Trump announced last month that Russia was going to supply diesel to the United States. In exchange for sanctions relief, President Putin was to send tankers full of diesel to America. However, public data shows that those ships never arrived. Since October 22, the Agioi Fanendes had been en route from the port city of Primorsk to New York with about 300,000 barrels of diesel. Arrival was scheduled for last week, but the tank…
Trump overtook the world with his announcement that the US would buy millions of tons of Russian diesel. But the tankers at sea turned off – they didn't find any customers. Moscow still benefits.
Trump announced the deal just before the election.
US efforts to lower the price of diesel allowed Russia to double its exports last month, although none of the shipments initiated by Donald Trump’s decision to lift fuel sanctions against Moscow have reached the US, The Financial Times reported. It expects the increase in supplies to be short-lived after Ukraine resumes attacks on refineries.
Russia's diesel exports surge 100% after Trump lifts sanctions; not a single shipment reaches US
In October, Russia significantly increased its diesel exports following an agreement between Trump and Putin aimed at boosting global supplies. However, U.S. markets have not seen any additional shipments due to concerns over sanctions and buyer reluctance. Most of the diesel was redirected to Brazil and Turkey instead. Experts warn that ongoing challenges at Russian refineries and potential renewed assaults may hinder future export levels.
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