CHICAGO, Ill. (RFD-TV) — Questions remain over a proposed deal to bring Russian diesel to North America.
President Donald Trump recently announced a deal with Russian President Vladimir Putin to import more than 300,000 tons of diesel immediately to North America.
Under the proposed agreement, another 500,000 tons would follow next month, with additional shipments expected afterward.
Patrick De Haan with GasBuddy says it remains unclear how the agreement would work or whether Russia can deliver the fuel.
“It’s hard to know where this diesel might be going. The U.S. exports about 1.3 million barrels of diesel every day. I don’t know if the president or the U.S. government is going to be buying the diesel itself or what this looks like. There haven’t been many details on that front. So, whether or not this happens is still very much in the air. For now, there has been a low-level psychological impact. Markets have traded a little bit lower, but I think there are a lot of skeptics in the market on whether Russia can even supply this.”
On-road diesel prices have come down slightly but remain above $6 a gallon.
