Russian Diesel Deal Unlikely to Relieve US Prices

• The proposed Russian diesel shipment for November is equivalent to only one day of US diesel consumption, thus having a minimal impact on US fuel prices.
• Russia's diesel refining capacity has been significantly damaged by Ukrainian attacks (around 50% hit), making large-scale exports challenging and forcing Russia to increase its own diesel imports.
• Legal challenges exist, as US law explicitly bans the importation of Russian oil and petroleum products until Russia withdraws troops from Ukraine, conflicting with the spirit and potentially the letter of the proposed deal.

Bloomberg Economics analyst Chris Kennedy discusses the proposed Russian diesel deal for the US, stating that the promised November shipment of 500,000 tons is equivalent to only one day of US consumption, making its impact on US fuel prices minimal. He highlights significant logistical and legal challenges, including existing US sanctions and damage to Russian refining capacity from Ukrainian attacks, which complicate the deal's feasibility.