Can Russian diesel help Trump bring down US fuel prices?
A few weeks after US President Donald Trump signed a law expanding sanctions on Russia [hell sanctions] his administration issued a general license allowing American companies to buy Russian diesel. The agreement Trump reached with Russian leader Vladimir Putin on diesel purchases drew sharp criticism from both Republicans and Democrats in Congress.
So what pushed the United States into such an abrupt move?
The root cause is a global diesel shortage. Since February, after the war against Iran began, only about a quarter of the usual volumes have passed through the Strait of Hormuz, which in peacetime handled roughly 20 percent of the world's oil and gas supplies. At the same time, strikes on Russian refineries knocked out a large share of capacity. For the United States, the consequences were immediate. The country is still the world's largest diesel exporter, but its stocks fell sharply, and the retail price reached a record $6.53 per gallon on September 22, almost double the level a year earlier. Because diesel powers freight transport and farm equipment, higher prices feed straight into the cost of food and logistics.
According to Pew Research Center, the economy is the top issue for 84 percent of registered voters. The midterm elections on November 3 are only weeks away, and traditionally Republican farm states such as Iowa and Kansas have ended up among the contested ones. Hence the administration's desire to demonstrate to voters a concrete result regarding fuel........
