(Central News Agency, Washington, 10th, comprehensive foreign news reports) U.S. energy policy experts said that Russia will increase the supply of diesel to the United States in the next few months, but this new agreement may not be able to effectively reduce the high diesel prices, let alone relieve price pressure on other commodities.
The Associated Press reported that U.S. President Trump announced on the 9th that he had reached an agreement with Russian President Vladimir Putin. Russia will immediately supply more than 300,000 metric tons of diesel to the United States, with an additional 500,000 metric tons in November, and an additional 4 million metric tons later.
The agreement represents a dramatic reversal of U.S. policy. The United States has banned imports of Russian oil since Russia launched its war against Ukraine. Now that the war between the United States and Iran has lasted for eight months, rising global oil prices are putting pressure on the U.S. economy and consumers.
Diesel prices have hit record highs in recent weeks, also pushing up inflationary pressures on various consumer goods.
Data from the American Automobile Association (AAA) shows that the average price per gallon of diesel in the United States hit a record high of $6.53 on September 22. The average price on the 9th was also close to $6.28 per gallon, much higher than the nearly $3.68 per gallon during the same period last year. European diesel prices have also hit new highs.
Energy policy experts said on the 9th that Russia’s increase in diesel supply may not have a significant impact on U.S. or global energy prices.
"It's like the Titanic is sinking but it's still rearranging the deck chairs," said Michael Lynch, a senior fellow at the Energy Policy Research Foundation, which specializes in energy and economic research.
Lynch said, "If we obtain diesel from Russia, it basically means that the original customers in Russia cannot get this batch of diesel, and they have to find another source of supply, so the price will basically not change."
The White House may hope that this measure will relieve the pressure of rising diesel prices faced by American truckers, ranchers and farmers, but it may not be able to do so.
Lynch pointed out, "The most optimistic scenario is that the price of diesel in New York and New Jersey and maybe Philadelphia and other places will drop slightly. This is just a redistribution of diesel and will not really change the global or national oil price."
Daniel Sternoff, a senior fellow at the Center for Global Energy Policy at Columbia University, said that in July Russia announced a ban on diesel exports due to Ukrainian drone attacks on its refineries. If Russia now believes that exports can be resumed, it will help stabilize global diesel prices.
However, the US-Iran war continues to affect shipping in the Strait of Hormuz, resulting in a large part of the Middle East's refining capacity being unable to supply the global market, so overall oil prices are likely to remain high.
"The supply of refined oil products such as diesel is still less than half of pre-war levels, so even if Russia does supply some additional diesel to the global market, it may ease price pressure slightly, but it will not significantly reduce oil prices," Stenov said.
Clayton Seigle, energy strategist at the Center for Strategic and International Studies (CSIS), believes that although the Trump-Putin agreement may not significantly reduce U.S. diesel prices, it will be beneficial to Russia.
Siegel pointed out that Russia is trying to sell summer-grade diesel and instead produce diesel specifications that will be needed in the coming months and are suitable for harsh winters and arctic regions.
