Oil prices fell after President Donald Trump announced an agreement with Russian President Vladimir Putin for Russia to supply diesel to U.S. and global markets. The deal is intended to reduce rising U.S. fuel costs.
The agreement calls for an immediate release of 300,000 metric tons of diesel, with larger quantities to follow. The U.S. Treasury Department issued a temporary waiver of sanctions on Russian diesel, effective until April 2027.
Ukrainian President Volodymyr Zelenskyy criticized the deal, calling it a “weak decision” and “an investment in a war that must be ended.” Bipartisan opposition has also emerged in the U.S. Senate, where lawmakers argue the move is unlawful and gives Moscow a financial lifeline.
Analysts are skeptical that the agreed volume will significantly reduce prices over the long term. They note that the initial shipments amount to a small fraction of daily U.S. diesel consumption.