Trump: Putin to Send Around 13 Million Barrels of Diesel, Germany Releases Its Reserve
Trump said Putin agreed to send around 13 million barrels of diesel in three installments, while Germany announced the release of up to 15 million barrels.
US President Donald Trump said Russian President Vladimir Putin agreed to send over 300,000 tons of diesel immediately, 500,000 tons in November, and one million tons thereafter, equivalent to around 13 million barrels in three installments.
In the same context, German Economics Minister Katharina Reiche said Germany will release up to 15 million barrels of diesel, heating oil, and crude oil.
The price of West Texas Intermediate (WTI) crude dropped to around $91 per barrel following the announcement, according to OilPrice.com, as some supply shortage fears in fuel markets dissipated.
These two offers come as part of international efforts to secure additional supplies in the diesel market, as markets seek to make up for any barrel shortfalls to avoid price hikes.
What do these terms mean?
West Texas Intermediate (WTI): One of the most important oil pricing benchmarks in the world, used as a reference for US crude prices.
Diesel: A refined petroleum derivative used as fuel for heavy vehicles, trucks, and trains, also known as solar fuel.
Reserve Release: Pumping quantities from a country's strategic fuel reserve into the market to compensate for shortages and curb prices.
Metric Ton: A unit of weight equal to one thousand kilograms, used to measure heavy fuel shipments such as diesel.
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