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Trump strikes diesel deal with Putin, reversing years of pressure on Russia over Ukraine war (www.france24.com)
submitted 2 days ago by to c/europe@feddit.org
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US President Donald Trump said Friday that Russia had agreed to immediately supply more than 300,000 tonnes of diesel to US and global markets in an effort to cut fuel prices before November's midterm elections. The move marks a stunning change of policy after the US and its allies hit Russia with waves of sanctions over its invasion of Ukraine.

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[–] 37 points 2 days ago (8 children)

I commented on this in another thread, but it fits also here:

Either Putin must be very desperate to discuss this with his secretary in the White House or there is something I don’t see.

Trump reportedly agreed with Putin to “immediately” supply more than 0.3m tons of diesel fuel into the U.S. and global markets, another 0.5m tons in November, followed by another 1m ton and then an additional 3m tons of diesel “within a short period of time,” based on the condition of Russian refineries.

That’s a total of 4,8m tons over the next months. Russia measures diesel quantities in tons, so the 4.8m tons are equal to a bit more than 35.5m barrels, the measure used by world markets.

Even if this agreement materializes - which is everything but sure imho - it must be a complete nothing burger.

Refineries in the U.S. are churning out some four to five million barrels every day, according to EIA, the U.S. Energy Information Administration. The majority of this volume - around 3.6m barrels - is consumed domestically, the rest is exported.

So even if Russia is able to deliver this volume of 35m barrels, the volume is equivalent to what is consumed domestically in the U.S. within less than just 10 days. In the world market this volume is next to nothing.

This must be a nothing burger imo. But I am not an expert for oil markets, so maybe someone with more expertise can give me a hint.

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  • [–] 18 points 2 days ago (4 children)

    My guess is that this is state level money and reputation laundering. Putin needs money/resources to keep his war going. Trump needs lower prices on the diesel pumps.

    If the USA actually buys from Russia, I wonder what currency they will use.

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  • [–] 6 points 2 days ago (3 children)

    I don't know whether this launders Putin's reputation, but it won't lower prices. There may be some nervous market volatility for a day or two that looks to bring the price slightly down, but it won't last for longer, definitely not until the U.S. midterms (3 November) imo.

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  • [–] 7 points 2 days ago (2 children)

    Not Putin’s reputation but Trump’s. Elections are coming in the US and people are pissed about fuel prices. Trump thinks this makes it look like he’s is doing something about it.

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  • [–] 3 points 2 days ago (1 child)

    I know, but this won't help imo. The price effect will be in a range so low that it is not measurable.

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  • [–] 6 points 2 days ago* (last edited 1 day ago)

    It won't help prices, but it doesn't have to. It will generate talking points and sound bites, and as we've all seen, that's all a frightening number of Americans seem to need to be convinced to vote for a con man.

    But who knows? Maybe the kayfabe is finally broken?

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  • [–] 5 points 2 days ago (1 child)

    Not an expert and never thought on this, before reading your comment.

    But this at least signifies once again that the American president is but a Russian bitch, who works for Russia not for the US. I wonder what American citizens think about that. Them being basically ruled by Russia, a failed state, which is rather a terrorist state run by mafia. A wonderful place of 250 years of democracy. Well, partially ruled, at least. I have no idea what part of the congress is bought by Russia and serves their interests. I hope it’s a minority, otherwise that’s just quite a miserable state to find yourself in.

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  • [–] 2 points 2 days ago

    Trump’s getting booed and heckled even red states. I think many who voted for him have finally become disillusioned with him.

    The real problem now is how much damage he can do in his lame duck phase, given how much he’s already done to undermine checks and balances against the executive. My biggest fear is that the Dems will win big in the midterms but still not stop Trump from fucking everything up.

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  • [–] 3 points 2 days ago*

    The US reneging on their sanctions would suggest the US is desperate no? I mean they desperately need to refill the reserves if they want a rematch in west asia and the zionists might kick it off themselves if he isn't fast enough. They were sitting at 415 mill. barrels in feb now at just below 300, 35 mill diesel would go a ways to refill by not having refineries use crude. Especially since they have now hijacked venezuelas oil, they're most likely prepping for another hormuz crisis.

    Also it can be used to boost the price of other oil products. Since you have to refine less, the supply of the other products shrinks.

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