President Donald Trump announced a Russian diesel deal on October 9 as oil supplies faced disruption. WTI crude oil closed higher that day. The Iran war threatened Strait of Hormuz shipping, while hurricane shutdowns cut U.S. offshore production.
Following a call with Russian President Vladimir Putin, Trump outlined diesel supplies for U.S. and global markets. He said Russia would ship more than 300,000 tons immediately. Another 500,000 tons were planned for November.
An additional 3 million tons would depend on conditions at Russian refineries.
Trump said the supplies would help lower diesel prices quickly, particularly for farmers, ranchers, and truckers. Earlier, he had previewed the announcement at a White House Columbus Day event without specifying delivery volumes.
Meanwhile, the U.S. Treasury issued General License 135 on October 9, authorizing specified transactions involving Russian diesel. These include sales, deliveries, offloading, and imports.
The announcement also comes as diesel shortages influence crude oil demand. Diesel is refined from crude, while WTI prices track the underlying commodity. The Energy Information Administration (EIA) October outlook identified diesel shortages as a factor increasing refiners’ demand for crude.
On Friday morning in the U.S., WTI traded near $90.78, down about 0.8%. As reported earlier, Trump described discussions with Tehran as productive and said Washington had no plan to attack Iran before the November 3 midterm elections.
According to Reuters, the comments eased concerns about Middle Eastern oil supplies, putting downward pressure on prices. However, Hurricane Isaias halted additional U.S. offshore production, raising supply concerns and providing some support to prices.
The decline followed Thursday’s rally, when WTI gained $3.21, or 3.6%, to close at $91.49 on October 8.
Despite the diplomatic signals, U.S. diesel remained expensive. AAA’s national average stood near $6.28 a gallon on Friday. Reuters reported a roughly 70% rise since the U.S.-Israeli war on Iran began. Attempts to expand supplies included calls for emergency reserve releases and wider access to red-dyed diesel.
EIA data showed distillate inventories near 105.1 million barrels in the week ending October 2. This category includes diesel and heating oil. Stocks changed little during the reporting period.
Commercial crude inventories fell by 3.2 million barrels to 424.1 million. Refineries increased processing by 223,000 barrels a day. Their operating rate reached 92.7% of capacity, up 0.2 percentage points.
(adsbygoogle = window.adsbygoogle || []).push({});As of press time, Bitcoin is trading near $82,450, according to CoinGecko. Ethereum stood near $2,479 after a 6.7% weekly decline. BTC’s 24-hour range ran from about $81,572 to $83,398.
Bitcoin rebounded on October 9 as Trump’s comments on Iran talks eased geopolitical concerns and improved investor appetite for risk. The shift in market sentiment supported the cryptocurrency’s recovery.
Despite the rebound, U.S. spot Bitcoin ETFs recorded $729 million in combined net outflows on October 7 and 8. According to Farside Investors, withdrawals reached $484.9 million on Wednesday and $244.1 million on Thursday.
Fidelity’s Bitcoin ETF led Thursday’s withdrawals with $197.1 million in net outflows, while BlackRock’s fund recorded another $5.5 million. The figures highlighted continued pressure on Bitcoin investment products despite the broader market recovery.
The continued ETF outflows showed that Bitcoin’s rebound had yet to attract sustained institutional demand. Meanwhile, high energy prices, disrupted oil shipments, and uncertainty over Russian diesel deliveries kept broader market risks in focus despite easing geopolitical tensions.
Related: US Eyes $1B Iran-Linked Crypto Seizure as Treasury Steps Up Pressure
