Russian Diesel Tanker Turns Back Off New York
A tanker loaded with Russian diesel has turned away about 400 nautical miles off New York. The move adds to uncertainty over deliveries of Russian diesel to the North American market.
Supply that may fall short
Ukraine has renewed its bombardment of Russian refineries, and that raises doubt over whether Russia can export as much diesel as it promised. Bloomberg counts six Russian refineries hit since the start of November, citing people with knowledge of the strikes. Together they have a design capacity of around 1.7 million barrels a day.
In late October Russian Deputy Prime Minister Alexander Novak said Russia was targeting diesel exports of more than 2 million tons in November, for world buyers. He added that Ukrainian attacks might trim available supplies.
A deal meant to ease fuel prices
The arrangement dates from last month. President Vladimir Putin pledged fuel for American and world buyers under an arrangement with President Donald Trump. US Democrats objected, saying it would give the Kremlin funds for its war in Ukraine. They also argued it would be too limited to lower prices, which was its aim ahead of the US midterm elections.
Interfax reported that Russia said last month that four tankers loaded with diesel for the US were part of the deal. Traders are closely watching these cargoes. Tracking data show no cargo of Russian diesel has yet arrived in the US.
The Agioi Fanendes turns back
The tanker in question is the Agioi Fanendes. It carries about 40,000 metric tons of ultralow-sulfur diesel, almost 300,000 barrels. It left Russia's Baltic port of Primorsk in late October and at first signalled New York. Later it changed its destination to "for orders".
Bloomberg's review of a port filing and vessel-tracking records shows the ship heading away from the US East Coast. Since Monday it has been dawdling in a zigzag pattern. Asked about the movement, the vessel manager Eastern Mediterranean Maritime Ltd said in an email that the ship is still "proceeding for orders as the discharging port is not confirmed yet". It had given the same answer to an earlier question.
Source: gCaptain