Morning Bid Americas: Diesel diplomacy
USO•A proposed U.S. waiver of sanctions on Russian diesel exports has stirred confusion, though the amount involved is equivalent to about 12 hours of global supply and is unlikely to affect U.S. pump prices in the next few weeks. Crude traded near $103 a barrel, while U.S. September inflation data and major bank earnings were due later in the week.
1. Diesel waiver debate
The proposed U.S. move to temporarily lift sanctions on Russian diesel exports prompted questions about its effect, as Russia faces a domestic shortage and the United States is a net exporter. Kyiv said Russia had not observed a proposed ceasefire covering energy infrastructure, while Ukrainian President Volodymyr Zelenskiy said Ukraine would stop hitting Russian refineries if Moscow honored its side of the agreement.
2. Markets and events
The diesel involved in the proposed waiver is equivalent to about 12 hours of global supply and is unlikely to make a meaningful difference to U.S. pump prices in the next few weeks. Crude was near $103 a barrel. The September CPI report was expected to show annual headline inflation as high as 3.7%, with core inflation likely more than a percentage point lower. U.S. banks were set to begin third-quarter earnings on Wednesday.
