Russia set to extend diesel export ban past September

Investing.com -- Russia plans to extend its ban on most diesel exports beyond the end of September as Ukraine continues to attack its refineries, Cloomberg reported Monday citing people familiar with the matter.

An extension by at least another month, or more, is reportedly under consideration.

Russia implemented the ban in July after Ukrainian strikes against its refineries pushed oil-processing rates to multiyear lows. The export restrictions, initially planned to last only weeks, were extended through August and then to the end of September as the attacks continued.

Moscow was studying another one-month extension as of last week.

Before the restrictions, Russia supplied roughly 10% of global seaborne diesel. The removal of these volumes from the market added to the disruption of Middle Eastern flows, supporting prices.

President Donald Trump recently attributed the price increases to the Russia-Ukraine conflict and said Moscow and Kyiv had agreed to stop striking each other's energy assets. Neither side confirmed such an agreement and the attacks have continued.

Analyst estimates compiled by Bloomberg show that the Middle East war has removed more diesel supply from the market than the Russia-Ukraine conflict.

US diesel prices reached a record $6.51 per gallon amid a global fuel shortage, prompting President Trump to publicly urge Ukrainian President Volodymyr Zelenskyy to halt drone strikes on Russian oil refineries and diesel infrastructure.

Ukrainian long-range drone attacks on Russian refineries have damaged Moscow's processing capacity, forcing Russia to halt product exports and turning it into a net importer of fuel.

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