Global diesel prices likely to stay high despite Trump-Russia supply deal

President Donald Trump's deal with Russia to supply diesel to US and global markets is unlikely to meaningfully lower diesel prices, market watchers and analysts said, noting that the promised volumes are too small to ease a global supply squeeze. Diesel prices have shot to record highs during the US-Israeli war on Iran, creating a political liability for Trump and his Republican Party as they campaign to maintain thin majorities in the US Congress in the November 3 midterm elections. Analysts said the announced volumes are unlikely to meaningfully lower prices, with US retail diesel topping $6 a gallon in September for the first time ever. Critics said lifting sanctions on Russian diesel could help Moscow fund further attacks on Ukraine, while analysts questioned whether Russia can substantially increase exports due to limited availability and elevated freight costs. Disruptions to diesel exports from Russia and the Middle East reached 1.3 million barrels per day in September, about 4.5% of global demand.