Oil prices eased at the start of the week after President Donald Trump announced an arrangement for Russia to supply diesel to U.S. And global markets, although crude remained sharply higher than a week earlier.
He also described a possible additional 3 million tons, dependent on the condition of Russian refineries. The first tranche is equivalent to roughly 2. 25 million barrels.
The announcement followed Trump’s Oct. 16 executive order waiving key sanctions, restrictions and duties under the Lindsey O. Graham Sanctioning Russia and Iran Act, which he had signed on Sept. The order said the waivers were in the national interest, while leaving some earlier Russia-related sanctions in place and directing officials to monitor Russian energy purchases and sanctions evasion. A temporary Treasury license allows qualifying Russian diesel loaded onto tankers by Oct. 16 to avoid U.S.
The arrangement has drawn criticism in Washington and Kyiv. Ukrainian President Volodymyr Zelenskyy called the decision weak and said it could give Russia additional resources to continue the war. Lawmakers also objected, arguing that the agreement conflicts with the sanctions law’s purpose. The United States has not imported Russian oil or gas since 2022, when such imports were banned after Russia’s invasion of Ukraine.
The effect on fuel prices remains uncertain. Energy specialists cited in the reporting said the promised volumes are small compared with the global diesel shortfall and may largely redirect supplies rather than add materially to worldwide availability. Russian Deputy Prime Minister Alexander Novak said Moscow was lifting export restrictions ahead of schedule and could begin deliveries to the United States this month.