U.S. President Donald Trump's latest geopolitical dealmaking effort to ease a diesel supply crunch ahead of November's midterm elections is unlikely to make a dent in prices, according to analysts.
Trump's declaration of an "energy ceasefire" between Russia and Ukraine on Sunday surprised policymakers across the world — not least in Kyiv — and prompted oil prices to fall on Monday, despite Russia striking a power plant shortly after the announcement. Oil later rose.
The president's declaration comes after he announced a deal for Russia to release 300,000 metric tons to the U.S. and global markets immediately, followed by another 500,000 tons in November and 1 million tons after that. Moscow will then deliver another 3 million tons of diesel based on the condition of Russia's refineries, Trump said.
Trump has sought to tame inflation ahead of the congressional midterms in November, when his Republican Party is at risk of losing both houses.
According to the Pew Research Center, 84% of registered voters say the economy is "very important" to their vote.