Experts doubt Russian diesel deal will cut U.S. pump prices much
President Donald Trump’s Friday deal for Russia to supply diesel drew skepticism from energy analysts who say redirecting existing Russian cargoes is unlikely to move U.S. pump prices much. National average diesel was about $6.28 a gallon Friday, AAA data showed via ABC/AP.
The deal: Trump announced Friday that Russia would supply more than 300,000 tons of diesel immediately, 500,000 tons in November, and about 4 million tons more later, ABC News and AP reported. The White House framed the arrangement as a way to ease U.S. fuel pressure ahead of the midterms.
Pump prices: The national average price for diesel was about $6.28 a gallon Friday, compared with about $3.68 a year earlier, AAA data showed via ABC. The record this cycle was $6.53 on Sept. 22, the same reporting said.
Analyst view: Michael Lynch of the Energy Policy Research Foundation called the deal “shuffling deck chairs on the Titanic,” arguing that redirecting Russian diesel from existing customers would not change the global price much, ABC/AP reported. Columbia’s Daniel Sternoff said Middle East refining disruptions tied to Hormuz and the Iran war have kept refined products at barely half of prewar levels, so Russian diesel might take the edge off but would not substantially lower prices. CSIS’s Clayton Seigle said the arrangement helps Moscow offload summer-grade diesel and ease a revenue squeeze more than it lowers U.S. or EU prices.
Weekend risk: AP reporting via KSAT noted that Saturday’s missile attacks on Saudi Arabia’s Riyadh airport have pushed oil prices up and rattled markets, adding another near-term risk for fuel costs.