Reasons Trump's Deal Won't Cut Diesel Prices
The article discusses the ineffectiveness of the agreement between U.S. President Trump and Russia regarding diesel supplies in reducing fuel prices in the United States. Although Moscow resumed diesel exports after a ban in July, the announced quantities are insufficient to compensate for the significant global shortage in supplies, and their impact on local prices is limited. Currently, diesel prices are around $6.27 per gallon, which is lower than last month's peak but still 71% higher than last year. Political and legal obstacles, including a law enacted in 2022 that prohibits Russian energy imports until the war in Ukraine ends, impose restrictions on the agreement's effectiveness. Experts believe that a noticeable price reduction requires either a ceasefire agreement between Russia and Ukraine or the resumption of navigation in the Strait of Hormuz. They consider the announced quantities to be only a small part of the global shortfall.
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