Trump's agreement with Russia to send diesel volumes is far too small to materially ease prices, with analysts saying it amounts to about 10 days of US demand.
01Summary
- 01Russia is set to supply 300,000 metric tons of diesel immediately, equal to about 2.24 million barrels.
- 02The full deal would total 4.8 million metric tons, or 35.76 million barrels, if carried out as announced.
- 03That is about 10 days of US diesel demand and slightly more than one day of global demand.
- 04US diesel prices averaged $6.28 a gallon on Tuesday, up 72% from a year earlier, according to AAA.
- 05Goldman Sachs said the October and November volumes would cut wholesale diesel prices by only $1 to $2 per barrel on the US Gulf Coast and in Europe.
02Why it matters
Diesel costs feed into transport and farming, so even small moves can affect prices across the economy. The deal also matters politically because it comes just before the US midterm elections and under pressure to ease fuel costs.
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