Russia announced it is extending its ban on diesel exports by producers until the end of October, effective from September 30. The measure deepens the crisis in global energy markets, which are already strained by fighting in Iran and Ukraine that has curbed energy shipments, and has driven diesel prices in the United States and Britain to record highs. Earlier, in late August, Russia extended its ban on diesel exports through the end of September, while still allowing deliveries to countries such as the former Soviet republics and Mongolia under intergovernmental agreements. Russia is the world's second-largest diesel exporter after the United States, but had already reduced export volumes since the summer before imposing the ban. Meanwhile, diesel prices in the United States surged to a record high above 6.50 dollars per gallon, becoming a political risk for President Donald Trump ahead of the midterm elections. Britain's RAC motoring association said pump prices for diesel in the UK climbed to a record high amid the fighting between the United States and Israel and Iran.
Russia extending its diesel export ban tightens global distillate supply, supporting heating oil/diesel prices.
