Jefferies: Trump-Russia diesel deal would cover about nine days of U.S. demand
Energy stocks and oil prices rose on Monday as Russian strikes hit Ukraine’s energy infrastructure and at least one Houthi missile struck the international airport in Saudi Arabia’s capital, complicating President Trump’s efforts to lower fuel costs.
Major U.S. equity indexes ended mixed in a session marked by light trading volume; U.S. bond markets were closed for Columbus Day and Indigenous Peoples’ Day. The Dow Jones Industrial Average closed at 51,654.95, the S&P 500 closed at 7,811.54, and the tech-heavy Nasdaq Composite closed at 27,366.17.
The S&P 500 Energy Sector outperformed the broader market, closing at its first record high in nearly a month with a 1.5% gain. International benchmark Brent crude rose 1.8% to $106.65 a barrel. Those gains came after Ukraine said Russian strikes had hit its energy infrastructure, despite President Trump’s declaration of an energy ceasefire.
On Friday, Trump said he had reached a deal for Russia to sell millions of tons of diesel into the market, a move designed to address climbing fuel costs for Americans. Traders are unconvinced the deal will make a meaningful difference. A Jefferies analyst estimated that if Russia releases the promised amount, the volume would cover a little more than nine days of U.S. demand.
Separately, at least one Houthi missile struck the international airport in Saudi Arabia’s capital city on Saturday, killing at least a dozen people and injuring hundreds more. The attack, carried out by Yemen’s Iran-backed Houthi militants, is the deadliest in Saudi Arabia in more than a decade, and the kingdom’s military has said it will respond.