Brent drops 1.48% as traders weigh Russian diesel supply — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Brent crude fell 1.48% to $105.05/barrel and WTI dropped 1.57% to $92.27 on Tuesday, as traders weighed competing supply and conflict signals.
- Trump defended on Truth Social his decision to temporarily ease restrictions on Russian diesel supplies, arguing the EU spent billions on Russian energy and saying the move was right for Americans.
- The six-month agreement would allow Russia to supply diesel to U.S. and global markets, though bipartisan U.S. lawmakers warned it undermines sanctions over Moscow's war in Ukraine.
- Goldman Sachs estimated that 800,000 metric tons of additional Russian diesel (roughly 6 million barrels) would lower wholesale diesel prices in the U.S. Gulf Coast and Europe by just $1–$2 per barrel.
- Goldman Sachs noted Russian refinery outages jumped 3 million barrels/day year-over-year, constraining Moscow's ability to ramp up output.
- Global diesel markets remain strained: U.S. inventories are down 14% year-over-year, visible Chinese stocks down 11%, and seaborne diesel exports have fallen 1.4 million barrels/day (20%) after seven consecutive months of lower global production.
- Iran-backed Houthi militants attacked King Khalid International Airport in Riyadh on Saturday, killing 12 and injuring more than 300 in what the source calls a major escalation that limited oil's downside.
Why it matters: Goldman Sachs estimates the Russian diesel supply boost would lower wholesale prices by just $1–$2/barrel — barely denting a market where U.S. diesel inventories are down 14% year-over-year and output has fallen for seven straight months. Refiners and consumers gain marginal relief despite bipartisan criticism that the move rewards Moscow.
Ask SkimNews
