Diesel in the U.S. is already more expensive than it was before the fuel agreement with Putin

Wholesale prices for diesel fuel in the U.S. resumed their upward trend after a brief decline, surpassing the level recorded before Donald Trump announced the agreements with Putin on the supply of Russian petroleum products.

Trading in November futures on the CME Group exchange closed at $4.88 per gallon, having reached $4.98 during the week. Energy market analysts note that the announced volumes of the first shipments from Russia, amounting to 300,000 metric tons (about 2.25 million barrels) are unlikely to significantly affect retail prices in the U.S., where daily diesel consumption stands at about 3.8 million barrels.

In addition, experts note that due to the length of the transportation process, no fuel shipments will reach the U.S. before the November 3 midterm congressional elections. The situation is also affected by the lack of concrete logistics agreements, legal risks for U.S. companies due to the 2022 legislative embargo, and ongoing risks of attacks on Russian refineries.

Sources: financial data from the CME Group.

U.S. senators have spoken out against Trump’s deal with Putin regarding the purchase of diesel fuel.

As a reminder, the U.S. is threatening to cut off intelligence sharing with Ukraine due to attacks on Russian refineries.