Two Russian diesel tankers change course away from US as fuel stocks fall

Two tankers carrying Russian diesel that had initially headed toward the United States have changed course, according to the Financial Times. One has entered the Mediterranean Sea through the Strait of Gibraltar, while the other is sailing toward South America. Their movements come as declining US diesel inventories increase concerns about supplies and the availability of foreign cargoes.

The vessels are Talisman, a 20-year-old tanker subject to US, UK and European Union sanctions, and Leruo, a Hong Kong-owned ship registered under the flag of Sierra Leone. Leruo is under UK, EU and Canadian sanctions. Neither vessel now lists the US Atlantic Coast as its destination. On November 5, Talisman was off Algeria in the Mediterranean and signalling that it was awaiting orders. Leruo had changed its destination signal to Brazil.

A third vessel carrying Russian diesel, the Greek-owned Agioi Fanendes, was still heading toward the United States, although it too was signalling that it was awaiting orders. Its owner, Eastern Mediterranean Maritime, previously told the Financial Times that the signal reflected uncertainty over where the cargo would be unloaded, with no discharge port yet confirmed.

Another tanker under sanctions, the Seychelles-owned Beast, also departed in the direction of the United States after loading at Russia's Primorsk port on October 27. It was transmitting an Atlantic destination signal, which the report described as indicating the US Atlantic Coast.

The course changes coincide with increasingly strained US diesel supplies. New figures show inventories have dropped below 100 million barrels for the first time in more than two decades. A lack of cargoes from abroad could deepen that shortage. Analysts identified warnings from New Jersey Governor Mikie Sherrill as one factor affecting shipments. She has threatened severe secondary sanctions against companies that accept tankers carrying Russian diesel.

Kpler analyst Matt Smith told the Financial Times that US buyers appeared hesitant because of regulatory, legislative and sanctions concerns. He said a diversion by Agioi Fanendes would therefore not be surprising. Jacob Meldgaard, chief executive of product tanker company Torm, also pointed to difficulties in bringing Russia back into the broader economy despite an administration seeking to do so.

The Washington Sun previously reported, citing industry groups, that Trump administration representatives were privately encouraging American companies to accept Russian diesel cargoes bound for the United States. Those efforts were described as part of a diesel deal and were taking place despite warnings that accepting the shipments could expose the businesses to legal risks.