(Bloomberg) — A tanker carrying Russian diesel that had briefly signaled the US made a U-turn about 400 nautical miles off New York, compounding uncertainty over deliveries to the North American market.
The Agioi Fanendes, hauling about 40,000 metric tons of ultralow-sulfur diesel, or almost 300,000 barrels, started to move away from the US East Coast and has been dawdling in a zigzag pattern since Monday, according to a port report and ship-tracking data compiled by Bloomberg.
Traders are closely watching movements of Russian diesel after President Vladimir Putin agreed to supply fuel to the US and global markets in a deal with President Donald Trump last month. The arrangement sparked criticism from US Democrats, who argued it would help the Kremlin finance its war in Ukraine, and so far no Russian diesel cargo has reached America, tracking data show.
The Agioi Fanendes signaled New York after departing Russia’s Baltic port of Primorsk in late October and later switched its destination to “for orders.” The tanker is still “proceeding for orders as the discharging port is not confirmed yet,” vessel manager Eastern Mediterranean Maritime Ltd. said in an email, repeating a previous response to a question about the ship’s movement.
Russia said last month it had loaded four tankers with diesel destined for the US, in line with the Putin-Trump agreement, according to Interfax.
The deal was aimed at lowering fuel prices ahead of the US midterm elections, though Democrats argued it would be too limited to do so. There’s also some doubt over whether Russia would be able to export as much diesel as it promised amid Ukraine’s renewed bombardment of the country’s refineries.
Since the start of November, six Russian refineries have come under attack, according to a Bloomberg tally based on statements from people familiar with the incidents. That equates to total design capacity of around 1.7 million barrels a day, Bloomberg calculations show.
In late October, Russian Deputy Prime Minister Alexander Novak said the country aimed to export more than 2 million tons of diesel to global markets in November. But he added that Ukrainian attacks may trim available supplies.
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