Aleksandr Novak, the Deputy Prime Minister of Russia, announced on a television program that the country is capable of restoring diesel exports to previous levels and even beyond the amount stated by U.S. President Donald Trump. Novak noted that the temporary lifting of U.S. sanctions on Russian fuel could help create balance in global supply and demand.
Increase in Diesel Exports by the End of the Year
Novak stated that Russia could increase diesel exports to between 3 million and 3.5 million tons per month by the end of 2023. This level of exports would return to pre-recent crisis levels. Before the drone attacks by Ukraine on Russian energy infrastructure in 2024 and 2025, the country's diesel exports exceeded 3 million tons per month. However, due to recent attacks and self-imposed restrictions on sales to foreign customers, Russia's diesel exports have significantly decreased.
Read more: Increase in Diesel Demand Benefits Product Tankers in the Global Market
Impacts on the Global Market
The Deputy Prime Minister of Russia stated that the country's diesel supply to the global market has had significant impacts on prices. According to Novak, diesel prices in global markets have decreased by about 5 to 6 percent. This price drop is due to the anticipated increase in supply from Russia and the market's reaction to the news released.
The U.S. government has also announced that Russia will supply more than 300,000 tons (equivalent to 2 million and 250 thousand barrels) of diesel to global markets. This amount is less than a day's consumption in the U.S. transportation sector, which is estimated to be about 2 million and 940 thousand barrels per day. Additionally, Trump announced that Russia would supply another 500,000 tons in November and an additional million tons immediately thereafter.
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