Trump strikes a deal with Putin to bring down diesel prices. But Russia may not have enough fuel to make it work, analysts tell Reuters.
Donald Trump’s deal with the Kremlin to supply diesel to the global market is unlikely to lower prices substantially, analysts and market participants interviewed by Reuters said. The promised quantities are too small, and Ukrainian attacks are preventing Russia from increasing production.
Experts say Donald Trump's deal with Russia to supply diesel could not substantially lower prices. The amount of diesel promised is too small. Trump claimed Russia would ship 300,000 metric tons of diesel first, followed by 500,000 metric tons in November. Baringa estimates this would be insufficient, predicting the country needs to produce 850,000 barrels of diesel daily.
Russia currently produces about 1.4 million barrels daily, with only a small export surplus. Analysts warn that even if Ukrainian attacks on refineries ended, it would take time for repairs and increased output, possibly not until the end of the year.
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