Business · Energy & Commodities · 1 day ago
Russian diesel deal is unlikely to lower fuel prices in Italy
Donald Trump and Vladimir Putin announced a deal for Russia to supply diesel to world markets.
The plan includes 300,000 tonnes immediately, 500,000 tonnes in November and another million tonnes after December.
The United States has suspended its sanctions on Russian diesel supplies for six months, but the European Union’s ban remains in place.
That means Russian diesel cannot be brought directly into Italy or other European markets under the deal.
The total supply is small compared with global use: the world consumes about 120 million tonnes of diesel over four months.
Prices fell briefly after the announcement, then began to rise again, and the added supply is not expected to bring Italian prices down.
The deal may matter more politically, while the diesel is expected to go to markets that already bought Russian fuel, including Turkey, Africa and South Korea.
The Russian diesel deal is unlikely to lower fuel prices in Italy because the promised supply is small compared with global consumption.
The package provides for 1.8 million tonnes over at least four months, while the world consumes about 120 million tonnes of diesel in that period.
The United States suspended its sanctions on Russian diesel supplies to world markets for six months, but the European Union’s embargo remains in place.
Oil prices initially fell after the announcement, then began to rise again by the morning of October 10.
The deal may have a political impact, according to Gianni Murano, president of Unem.
- Who
- Russia is to supply the diesel under an agreement announced by Donald Trump and Vladimir Putin.
- What
- The deal covers 1.8 million tonnes of Russian diesel, while the United States suspends relevant sanctions for six months.
- When
- Announced shortly before 21:00 Italian time on Friday, October 9, 2026.
- Where
- The diesel is intended for world markets, but cannot enter Italy or the wider European market under the continuing embargo.
- Why
- The deal is intended to put Russian diesel on the market; its effect on prices in Italy is expected to be limited because the quantities are small relative to consumption.
This story does not have two clearly opposing sides.
The announcement may have a downward impact on diesel prices, although the quantities envisaged (one million tonnes in three months) do not seem decisive in a market like Europe (including the United Kingdom), which absorbs about 5 million tonnes a month.
Trump and Putin announced the agreement on Russian diesel supplies.
Brent and WTI prices fell, while US ULSD diesel futures dropped by about 4%.
Brent was at $104 and WTI above $91, and both had begun to edge back up.
- Total package
- 1.8 million tonnes over at least four months
- Initial supply
- 300,000 tonnes, to be put on the market immediately
- Further supply
- 500,000 tonnes in November and 1 million tonnes after December
- Global diesel consumption
- 3.8–4.1 million tonnes per day
- US sanctions suspension
- Six months
- European market
- Russian oil and derivatives, including diesel, remain under embargo
Sources
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