
Trump’s deal with Putin will have little impact on US diesel prices, experts say
Neutral Summary: President Trump announced an agreement with Vladimir Putin to temporarily lift US sanctions on Russian diesel imports, aiming to reduce fuel prices that have surged nearly 70% since the outbreak of the US–Iran war, reaching approximately $6.30 per gallon.
The agreement provides for three shipments:
- 300,000 tonnes immediately, equivalent to roughly 75% of daily US diesel consumption.
- 500,000 tonnes in November.
- 1 million additional tonnes subsequently.
However, energy analysts argue the agreement will have little meaningful impact on diesel prices for several reasons:
- Insufficient volume: The initial shipment represents less than a day's US consumption.
- Transportation delays: Shipping Russian diesel to the US will take approximately three weeks, meaning supplies will arrive shortly before the November midterm elections.
- Russian production constraints: Ukrainian drone strikes have damaged Russian refining infrastructure, raising doubts about whether Russia can fulfill its commitments.
- Sanctions complications: Companies must navigate potentially conflicting US and European sanctions requirements when handling Russian-origin fuel.
https://www.theguardian.com/us-news/2026/oct/11/trump-russia-diesel-deal-putin-little-impact-prices
Note: Yes, the Summary is AI Generated. AI is very good at summarizing things. The point of the summary is to provide a factual basis for discussion, not prove to you that I am smart and I know what I am talking about.
Commentary: There is so much about this deal that just doesn't make sense.
First, obviously it is bad to give the Russians money while they bomb Ukrainian women and children. That's precisely why restricting Russian energy revenues, including discouraging countries like India from purchasing Russian oil, has been a central component of sanctions policy.
Second, Russia itself is experiencing fuel shortages. Just last week, *The Guardian* reported that South Korea had exported more than 176,000 tonnes of fuel, predominantly diesel, to Russia to help alleviate its shortages. How much additional diesel can Russia realistically export when its refineries are already struggling to meet domestic demand. And if imports really would solve the American shortage...why isn't America buying from South Korea?(https://www.theguardian.com/world/2026/oct/06/oil-tankers-south-korea-russia-ukraine-war)
Third, the United States is itself a major net exporter of diesel and related distillates, exporting approximately 53 million barrels per month.
Importing a relatively trivial quantity of Russian diesel, much of which would likely enter through import infrastructure concentrated on the East Coast, is unlikely to materially reduce US prices, especially in the farm states. Maybe its good for Susanne Collins in Maine?