Russia Raises Diesel Output After US Fuel Deal

Russian refiners raised diesel production in October after the government issued export quotas following a fuel-supply agreement with the United States that President Donald Trump announced on October 9. Industry sources said output fell to about 160,000 metric tons per day in the first half of October from 175,000 in September, then rose toward 180,000 after mid-month quotas. Domestic use typically drops to about 140,000 tons per day in October, leaving more than 1 million tons a month available for export, though 200,000 to 300,000 tons may go to neighboring countries. Trump said Russia would deliver more than 300,000 tons immediately, 500,000 tons in November, 1 million tons after that, and a further 3 million tons depending on refinery conditions. The United States temporarily eased sanctions on Russian fuel. Export quota exemptions to Russia's August diesel ban began October 1. Sources expect Moscow to keep the formal ban and regulate overseas shipments through quotas. On October 23, LSEG data showed a Malta-flagged tanker carrying 40,000 tons of Russian diesel bound for New York. Kremlin spokesman Dmitry Peskov said the same day that shipments to the United States would continue regularly after the first tanker departed.