First Russian diesel cargo for US sets sail as pump prices hit $6.32
A tanker carrying about 300,000 barrels of Russian diesel left Primorsk for New York, where it is due on November 7, as US diesel prices climbed to $6.3172 a gallon, up from $6.3090 a day earlier.
The vessel Agioi Fanendes, flagged in Malta, loaded roughly 40,000 metric tons of ultra-low sulfur diesel at the Russian Baltic port on Thursday before departing early Friday, according to shipping data. The cargo follows an agreement reached earlier this month between US President Donald Trump and Russian President Vladimir Putin aimed at easing US diesel costs ahead of the November 3 midterm elections.
The shipment will not reach New York before the vote, and its volume is too small to meaningfully ease pressure on the global diesel market, according to analysts.
When he announced the arrangement on October 9, Trump said Russia would immediately ship more than 300,000 tons of diesel, followed by 500,000 tons in November and 1 million tons afterward. Russia’s government partially lifted its own export ban the next day, permitting an initial 500,000 tons onto world markets, Kommersant reported.
Additional cargoes loaded at Primorsk last week, though their destinations remain unclear. Separate tracking data showed at least two other Russian diesel tankers signaling routes toward Turkey and Brazil, both longstanding buyers since the European Union barred Russian refined product imports in 2023 over the invasion of Ukraine.
Meanwhile, US diesel prices are climbing again as crude oil rises amid fresh tensions in the Middle East. The $6.3172 per gallon average on October 23 compares with $3.6315 a gallon a year earlier.
Why it matters: Diesel prices feed directly into transport and production costs, influencing broader inflation readings and energy demand. Any sustained increase in Russian supply to Western markets could also affect Brent and WTI crude pricing dynamics tied to sanctions and global refined product flows.
Source: OilPrice.com