A new pact that calls for Russia to boost the U.S. supply of diesel over the next few months is unlikely to make a dent in painfully high prices at the pump or elsewhere, energy policy experts say.
asserted
experts → call → pump
President Donald Trump announced Friday that he had struck a deal with Russian President Vladimir Putin to immediately supply the U.S. more than 300,000 tons of diesel.
asserted
he → announce → diesel
That would be followed by an additional 500,000 tons in November, then 4 million more tons at some point after that.
asserted
That → follow → that
The deal marks a stark reversal of policy by the U.S., which from the start of Russia’s war with Ukraine had banned imports of Russian oil, and comes at a time when the U.S. economy and consumers are being squeezed by a global rise in oil prices due to the eight-month-long U.S. war with Iran.
asserted
economy → mark → Iran
The price of diesel has shattered records in recent weeks, ratcheting up inflation for a broad swath of consumer goods.
asserted
price → shatter → goods
The national average for a gallon of diesel in the U.S. hit a record high of $6.53 on Sept. 22, according to motor club AAA.
uncertain
average → hit → AAA
It averaged nearly $6.28 a gallon on Friday, up from almost $3.68 this time last year.
asserted
It → average → 3.68
Diesel prices have hit records in Europe, too.
asserted
prices → hit → Europe
Higher diesel prices mean more expensive transportation for a long list of everyday goods.
asserted
prices → mean → goods
That’s because diesel is used for many freight and delivery networks.
asserted
diesel → ’ → networks
And some businesses have already passed along steeper costs to consumers in the form of added fees on online orders and packages in the mail.
asserted
businesses → pass → mail
Shoppers may feel more and more sticker shock, particularly in the grocery aisle.
uncertain
Shoppers → feel → aisle
Perishable foods, like meat and produce, face one of the most immediate strains of expensive diesel because they need to be hauled in and restocked frequently — or may be harvested using farm equipment powered by the fuel.
uncertain
they → face → fuel
That’s turned up the heat on Trump and the Republican Party to address surging prices ahead of the Nov. 3 midterm elections.
asserted
That → turn → elections
The president’s approval ratings on the economy have hit a new low, according to an AP-NORC poll released last week, as the Iran war and his trade battles have increased U.S. prices for oil and other goods.
uncertain
war → hit → oil
A limited impact, at best
Energy policy experts on Friday expressed doubts that a boost in diesel supply from Russia will have a significant impact on oil prices, whether in the U.S. or globally.
asserted
boost → express → U.S.
“It’s kind of shuffling deck chairs on the Titanic,” said Michael Lynch, distinguished fellow at Energy Policy Research Foundation, a nonpartisan research institution focused on energy and economics.
asserted
Lynch → shuffle → energy
“If we get diesel from Russia, basically it means that their existing customers are not going to get it and they’ll have to go somewhere else, and that will keep the price basically where it is now,” Lynch said.
asserted
Lynch → get → price
And while the White House may be counting on this move to give some relief at the pump for U.S. truckers, ranchers and farmers who have been hit hard by rising diesel prices, that’s not a given.
uncertain
that → count → prices
“The best you could hope for is a tiny dip in prices locally in places like the New York-New Jersey area, Philadelphia maybe,” Lynch said.
uncertain
Lynch → hope → area
“It just means that the oil is just going to be shuffled around and it’s not really going to change the price globally or across the U.S.”
asserted
it → mean → U.S.
If Russia, which in July moved to ban diesel exports due to Ukrainian drone strikes on its refineries, now believes it is able to resume exports of diesel, then that will help stabilize global diesel prices, said Daniel Sternoff, senior fellow at the Columbia Center on Global Energy Policy.
asserted
Sternoff → move → Policy
However, prices are likely to remain elevated overall because a lot of refining capacity in the Middle East isn’t available to the world market due to the disruptions in the Strait of Hormuz from the ongoing U.S.-Iran war.
asserted
lot → remain → war
“Refined products like diesel are still barely half of prewar levels,” Sternoff said.
asserted
Sternoff → say → levels
“So, even if there were to be some follow-through from the Russians to put a little extra diesel into the world markets, it might take the edge off of prices, but it will not substantially lower them.”
uncertain
it → be → them
While the deal between Trump and Putin probably won’t have much of an impact on prices for diesel consumers in the U.S., it will benefit Russia, said Clayton Seigle, an energy strategist and expert at the Center for Strategic and International Studies.
asserted
Seigle → have → Studies
That’s because Russia is trying to offload its summer-grade diesel for the heavier winter and arctic grades that they will need in the coming months, Seigle noted.
asserted
Seigle → ’ → months
“I don’t think it’ll be enough to materially lower prices in the United States or Europe, but it does certainly let Moscow off the hook in terms of revenue squeeze,” he said.
asserted
he → think → squeeze
The Aporia
