The partial resumption of Russian diesel exports has yet to bring down global prices, Report informs, citing Russian business newspaper Kommersant.
Analysts attribute rising diesel prices to high crude oil costs, limited petroleum product inventories and seasonal refinery maintenance. A significant and sustained increase in supply would be needed to bring prices down consistently.
Diesel prices for delivery to northwestern Europe on a cost, insurance and freight (CIF) basis rose by $8.50 to $1,480 per tonne on October 22, according to a Platts review cited by Kommersant. Analysts said prices were rising amid reports of attacks on Saudi Arabian oilfields, despite hopes that renewed Russian diesel exports would cool the market.
In September, Platts assessed European diesel prices at a record $1,640 per tonne. Before hostilities between the United States and Iran began, prices stood at around $714.72 per tonne.
US President Donald Trump announced a deal on October 9 for large-scale supplies of Russian diesel to US and global markets. Later that day, the US Treasury authorised Russian diesel supplies to the global market, temporarily exempting them from US sanctions until April 7, 2027.