First Russian Diesel Tanker to Sail for the U.S. on Thursday as Prices Stay Above $6 a Gallon

Russia will send its first tanker of diesel to the United States on Thursday, Deputy Prime Minister Alexander Novak confirmed, as retail diesel prices across the country remain above $6 a gallon.

The vessel will carry 40,000 tons of diesel, Novak said, adding that paperwork for the shipment is close to completion. He did not name the port that will receive the fuel. “It is expected to depart tomorrow,” Novak told reporters, according to Reuters. “We will meet the United States’ needs, to the extent of our capabilities.”

The sailing follows talks in St. Petersburg on Wednesday between Russian President Vladimir Putin and President Trump’s special envoy Steve Witkoff, where the shipments were discussed on camera. Putin said Russia is preparing diesel shipments to the U.S., with the first tanker of about 40,000 tons expected to leave within days and more to follow once financial arrangements are completed. “The financial component should be provided,” Putin said. “They will go one after another.”

Witkoff thanked Putin for lifting restrictions on diesel exports. “That’s an example of us working together,” he said. “I want to thank you for that.”

The diesel shipments have added strain to relations between Washington and Kyiv. Ukrainian President Volodymyr Zelenskyy has openly questioned U.S. intelligence sharing and the Starshield satellite contract, but Trump and Zelenskyy met in Oslo on Tuesday and, according to reports, reached an agreement to resolve the issues.

Deal began Oct. 9

The arrangement began on Oct. 9, when Trump announced that Russia would export 300,000 tons of fuel to the United States immediately, with more shipments to follow. Russia partially lifted its ban on diesel exports the next day. Putin also offered fertilizer “in large quantities” as part of the arrangement.

U.S. retail diesel has stayed above $6 a gallon since September after hitting a record $6.53 on Sept. 21, according to AAA data. The latest national average was $6.32 a gallon, up almost 70% since the United States and Israel attacked Iran on Feb. 28. California drivers paid an average of $8.43 a gallon Thursday morning, while drivers in Mississippi paid $5.86.

The wholesale market has also been volatile. Ultra-low-sulfur diesel futures for November delivery on the New York Mercantile Exchange jumped almost 20 cents a gallon, or 5%, in just over two hours on Tuesday, the first trading day after the Columbus Day holiday weekend, as traders reacted to Trump’s Friday announcement of the deal. “Absolutely stunning price spikes in wholesale diesel today,” wrote Tom Kloza, an oil markets analyst and adviser at Gulf Oil, on X. Kloza warned that the record $6.53 retail price could be topped by the midterms, which are scheduled for Nov. 3.

Markets appear unconvinced that the Russian fuel will arrive soon enough to matter. “Market clearly not believing that Russian oil is on the way,” Kloza posted Tuesday, noting wholesale spikes of 18 cents a gallon on the Gulf and East Coasts and 28 to 30 cents in the Great Plains and Great Lakes. Matt Smith, lead oil analyst for the Americas at data firm Kpler, told Reuters that the initial 300,000 tons amounts to about 73,000 barrels a day spread over a month, “probably not enough to move global prices much,” in his words.

Farmers feel the squeeze

Farm groups are among the hardest hit. A California Farm Bureau survey found that 40% of the state’s farmers are scaling back field operations as diesel costs climb. “Diesel powers the equipment that plants, irrigates, harvests and transports our food,” said California Farm Bureau President Shannon Douglass. “These survey results show the financial pressure fuel costs are placing on family farms across California. Farmers won’t survive if something doesn’t change.”

Harvest-season prices remain high across the Midwest: Iowa corn farmers paid an average of $6.07 a gallon with the state’s corn harvest 14% complete, Indiana averaged $6.62 with the harvest 34% complete, and Illinois hit a record high of $6.57 with the harvest 51% complete, according to USDA data. The administration has already announced a Harvest Fuel Relief program for farmers to blunt the cost shock.

The International Energy Agency said Wednesday that global diesel markets could remain tight past mid-2027. “Record diesel prices are already having broad economic consequences by raising the cost of goods and impacting real incomes, economic activity, and inflation,” the agency said.

Reporting based on coverage by ProfiloPolitics and the Center Square, via the Cape May Daily.