Diesel prices fell on Monday, 12th October, after U.S. President Donald Trump claimed that an “energy ceasefire” had been agreed between Russia and Ukraine.
Trump’s announcement comes just days after a surprise deal with the Kremlin to release a small amount of diesel into U.S. and global markets.
Putin in Meeting Creative Commons Photo
Kremlin Speech by Putin. Image Credit: Creative Commons.
Diesel prices have soared to record highs in recent weeks, and remain well above pre-war levels.
Deal Agreed? Or Not on Ukraine?
For much of the past year, Ukraine has targeted critical Russian infrastructure to disrupt Moscow’s war efforts.
Through cheap, easily replaceable drones, Kyiv has damaged energy facilities across Russia, forcing several to suspend operations.
Naturally, this reduces oil supply, causing fuel shortages that hamper Russia’s military operations while raising costs for everyday Russians.
It also hits the Russian economy, as fewer nations still trading with Moscow have access to fuel.
Trump has increasingly voiced frustration with Russia and Ukraine over continued attacks on oil refineries in the face of a worldwide shortage of diesel which, in part, is fueled by the Iran war and Tehran’s ongoing closure of the Strait of Hormuz.
Ukrainian President Volodymyr Zelensky agreed to a ceasefire on energy facilities on the condition that his Russian counterpart, Vladimir Putin, agreed to the same.
Still, the two warring nations have continued to exchange strikes.
With the U.S. President under pressure at home to reduce living costs ahead of next month’s midterm elections, Trump has pushed for a ceasefire on energy infrastructure between Russia and Ukraine – something that was reportedly agreed over the weekend.
“Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine,” Trump wrote on Truth Social on Sunday. “Both parties have agreed. Do not break it!” he added.
Differences of Opinion
Speaking at the Warsaw Security Forum, Zelensky said that his country “immediately supported the idea of an energy ceasefire,” but questioned whether Russia would comply.
“Our offer is honest and clear; we are ready to respect an energy ceasefire if Russia is ready to do the same,” Zelensky added. “We agree if they agree. And we have already shown that we mean it.”
Noting that Russia had already breached the ceasefire since Trump’s Truth Social announcement, Zelensky said: “Last night, Russian oil refineries were not burning. But at midnight, a Russian jet-powered ‘Shahed’ struck a gas-production facility in Ukraine. There was also a Russian strike on an ordinary gas station, involving several drones.”
The Ukrainian President added that he was awaiting further details of “the conversation between the Americans and the Russians” about the energy truce.
Russia Refuses to Comment
Kremlin spokesman Dmitry Peskov said his country had rejected the idea of a proposed 60-day ceasefire by Zelensky to allow his country to hold elections.
“In the Kremlin, both President Putin and officials at other levels have repeatedly stated that we do not want a ceasefire,” Peskov said. “We want long-term peace and are prepared to do everything possible to achieve it.”
He was also questioned on Trump’s announcement of an energy ceasefire, to which he replied: “Contacts [are] continu[ing]. As soon as we have something to say on the matter, we will inform you.”
Prices Fall Slightly
Earlier over the weekend, Trump announced a surprise deal with Russia to release diesel onto the U.S. and global markets.
Under the deal, struck during a telephone call between the U.S. and Russian leaders, Russia will supply 300,000 tons of diesel immediately, with another 500,000 tons available on Sunday, 1st November. In total, it would supply a further four million.
Questions remain about how impactful the diesel deal will be, but prices only dipped slightly when markets opened on Monday.
European diesel prices fell 5% to $1,410 per ton on Monday morning before recovering to $1,450.
Brent crude, the international benchmark for energy prices, fell at the open but later rose 1.2% to $106 per barrel.
Trump faces domestic pressure to lower living costs with just three weeks to go until the midterm elections. An AP-NORC poll released on Thursday, 1st October, found that only 17% of respondents approve of his administration’s efforts on the issue, even as the cost of living tops most voters’ minds as they head to the polls next month.
About the Author: Shay Bottomley
Shay Bottomley is a British journalist. He has written for the Western Standard, Business Insider, Maidenhead Advertiser, Slough Express, Windsor Express, Berkshire Live and Southend Echo.
