Russia bans diesel exports, U.S. diesel futures jump 11.6%

Russia has imposed a full ban on diesel exports effective July 8 through at least July 31, 2026, as mounting refinery disruptions and domestic fuel shortages prompt Moscow to prioritize local supply over export revenue. Deputy Prime Minister Alexander Novak announced the measure during a government meeting chaired by President Vladimir Putin. The ban is broader than earlier restrictions, covering diesel, marine fuel and gas oils and aiming to close loopholes that had allowed shipments to continue despite prior curbs. The move follows months of pressure on Russia’s refining system from Ukrainian drone strikes, which have disrupted roughly a quarter of diesel production capacity and contributed to visible strains in the domestic market, including sales limits at gas stations, long queues in some regions and fuel-distribution restrictions in Crimea. By June 2026, Russian diesel exports had fallen to about 428,000 barrels per day, down more than 50% from prior averages, while total June exports were about 7.93 million barrels, a 45% decline from the previous month. Global diesel markets reacted sharply. U.S. ultra-low sulfur diesel futures rose 11.6% to settle at $154.71 a barrel, their biggest one-day gain since March 2022, while European diesel crack spreads climbed to $60.17 per barrel. Russia had accounted for roughly 11% of global seaborne diesel supply, making the halt significant for importers including Turkey, Brazil and parts of North Africa that now face tighter supply and the need to secure alternative barrels.