Trump-Putin diesel deal unlikely to cut prices, analysts say

Analysts polled by Reuters say the diesel supply deal announced by Presidents Trump and Putin in early October is unlikely to significantly lower global prices, as promised volumes are too small and production increases are hindered by Ukrainian attacks. Russia plans to ship 300,000 tonnes in October, 500,000 tonnes in November, and an additional one million tonnes later. Experts doubt Moscow can produce enough fuel short-term, citing tanker market tensions. Even if fulfilled, the first shipment equals about 73,000 barrels per day, far below the 400,000 to 850,000 barrels daily needed for noticeable price drops. Russia produces roughly 1.4 million barrels of diesel daily against domestic demand of 1.2 million, requiring extra output of 384,000 to 509,000 barrels. Up to 45% of refining capacity may be damaged, and Moscow still imports petroleum products. The first tanker, carrying 40,000 tonnes, departs for the US on October 22.