President Donald Trump said he secured an agreement from Russian President Vladimir Putin for Russia to “immediately supply” more than 300,000 tons of diesel to global markets, with another 500,000 tons promised in November. Trump and the Kremlin framed the move as easing energy costs; the two tranches together equal about 6 million barrels, roughly a day and a half of US diesel demand, according to the US Energy Information Administration. Diesel futures fell about 4% at Friday’s close, but energy analysts including Dan Pickering called the volumes modest, estimating perhaps a 5 to 6 percent supply increase through year end and saying the deal is “helpful but not a needle mover.” Analysts and commodities traders also raised doubts that Russia could immediately deliver the promised volumes, noting Moscow banned diesel exports in early July after Ukrainian strikes removed roughly 800,000 barrels per day from global markets and extended that ban last month. Ukraine sharply criticized the announcement: President Volodymyr Zelensky called the decision “a weak decision of strong partners” and said it was “an investment in war that must be ended, not prolonged,” warning the exports would fund Russia’s fighting. The Kremlin quoted Putin saying Russia was “ready to supply oil and petroleum products to the US and global markets,” while Trump said oil prices were “dropping like a rock”; further shipments, Trump said, would depend on the condition of Russian refineries.
