Reuters: Russian refineries increase diesel production after deal with US
- Author:
- Svitlana Kravchenko
- Date:
Russian refineries have begun increasing diesel production after authorities allowed some of the fuel to be exported as part of an agreement with the United States.
This was told to Reuters by two informed sources.
Thus, in the first half of October, diesel production in Russia fell to about 160 000 tons per day, compared to 175 000 tons in September. However, after companies received new export quotas in the middle of the month, the figure began to increase and approached 180 thousand tons per day.
The agencyʼs sources note that domestic diesel consumption in Russia in October usually drops to about 140 000 tons per day. So at least 40 000 tons per day, or more than a million tons per month, may remain for export. Part of this volume will go to neighboring countries.
Reuters sources expect that the Russian authorities will not completely lift the ban on diesel exports, which has been in effect since August of this year, but will continue to regulate supplies through separate quotas.
US-Russia diesel deal
On October 9, the US President Donald Trump reported that he had reached an agreement with Putin to supply Russian diesel fuel to the US and world markets. To this end, Washington temporarily eased sanctions against Russian diesel.
Trump then explained this by saying that this agreement, together with US control of the Strait of Hormuz, would help to quickly lower diesel prices in the US and the world. According to Trump, Russia would initially supply 300 000 tons of fuel, followed by another 500 000 tons in November, and then another million tons.
The US Energy Secretary Chris Wright said that one of the reasons for the agreements with Russia was to encourage the Kremlin to end the war against Ukraine.
On October 23, a tanker under the Maltese flag with 40 000 tons of Russian diesel fuel departed for New York.
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