Oil analyst ‘skeptical’ that Trump’s diesel deal with Russia will lower prices
Oil analyst Patrick De Haan said Monday that President Trump’s deal with Russia to supply the U.S. and global markets with diesel fuel may not lower fuel prices.
“On the policy front, the Trump administration’s proposed diesel deal raises more questions than it answers, and I remain skeptical that it will deliver significant relief to the trucking industry and consumers who depend on diesel,” De Haan, the head of petroleum analysis at GasBuddy, wrote on social platform X.
Trump said Friday he and Russian President Vladimir Putin agreed to a deal under which Russia “will immediately supply” more than 300,000 tons of diesel fuel to the American and global marketplaces.
Russia will supply another 500,000 tons in November, 1 million tons “immediately thereafter” and 3 million tons “within a short period of time” depending on the condition of its diesel refineries, Trump added.
“Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!” the president wrote Friday on Truth Social.
Ukrainian forces have targeted Russian oil refineries recently, as its four-year war against Russia marches on.
Trump claimed Sunday the two sides reached an energy ceasefire deal, although Ukrainian President Volodymyr Zelensky said later in the day that Russian forces attacked a power plant in Kharkiv, Ukraine.
Diesel prices have spiked amid the U.S.-Iran and Ukraine-Russia conflicts. The national average price of a gallon of diesel fuel is roughly $6.27 as of Monday, roughly $2.60 higher than a year ago, according to data from AAA.
De Haan noted Monday diesel prices have decreased slightly in the last week, as AAA reports the per-gallon cost dipped by about 5 cents.
Regular gas, which costs roughly $4.36 per gallon as of Monday, is also down by roughly 1 cent week-to-week. Gas prices are still up by about $1.28 from a year ago, according to AAA.
“For now, the trend is cautiously in the right direction for motorists, but between hurricane season and continued geopolitical uncertainty, it is far too early to declare the pressure on fuel prices resolved,” De Haan said.
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