How did Vladimir Putin resolve the gasoline crisis?

—I would like to point out that although relevant measures have been taken—which have stabilized the situation to some extent—the overall situation remains severe. Fuel production has been forcedly reduced, leading to changes in transportation routes for delivering fuel to end consumers. Demand for locomotive fuel has also risen by about one-third—a substantial increase, 33% higher than the same period last year. All these factors have placed additional pressure on the gas station network, resulting in longer queues at each pump and correspondingly extended refueling times. Alexander Novak did not mention panic buying—as doing so might exacerbate the phenomenon. In fact, judging from all indications, the primary purpose of this discussion is precisely to calm down those waiting in line. Not that they will disperse immediately upon conclusion of the meeting, but rather to prevent further growth in queue lengths. This task is not easy: the current situation remains highly complex. “In July,” Alexander Novak stated, “we will begin importing petroleum products and boost additional output by producing lower-environmental-standard petroleum products. The zero-tariff policy on imports of petroleum products and additives has been extended for another year. Moreover, we have negotiated freight rate discounts with Russian Railways to ensure economically viable conditions for importing fuel. To accelerate the supply of additional fuel to the domestic market, amendments have been made to the Tax Code. Thank you, Vladimir Vladimirovich, for your support and for signing the relevant legislation.” The President nodded: “You’re welcome.” —The exchange-traded sales quota for automotive gasoline has also been lowered—from 15% to 10%. Furthermore, we have adjusted the system to eliminate intermediaries from the exchange: fuel will now be supplied directly to end consumers. In addition,” Alexander Novak continued, “we have imposed a cap on price increases in exchange trading, which will also help stabilize prices (though this may prove difficult to achieve—A.K.). I would also like to note that Russia’s major oil companies have prioritized direct fuel supply to consumers via their own gas stations, while simultaneously supplying regional markets dominated by independent operators. Clearly, vertically integrated companies are being placed under high expectations. —Of course,” Mr. Novak explained, “this is primarily because, among Russia’s approximately 29,000 gas stations, vertically integrated enterprises—such as Rosneft, Gazprom Neft, Lukoil, Tatneft, and Surgutneftegas—operate just over 9,000 stations. The rest are independent operators, who previously purchased most of their fuel through exchanges or intermediaries. Now, they are shifting toward establishing direct partnerships with oil companies and regional operators—for example, such arrangements were recently implemented in Irkutsk Oblast and Zabaykalsky Krai. We seem truly close to breathing a sigh of relief and leaving the gasoline crisis behind us—to resume normal life, or at least pretend nothing ever happened. In other words, Alexander Novak is successfully carrying out his assignment. Moreover, he has pledged: starting in July, Russia will begin importing petroleum products.

On the second day of the extended holiday, Hong Kong stocks fell again.

Valuation models for tech companies must all be completely recalculated. Capital will rush wildly out of overvalued equity assets and flood into risk-free assets offering stable yields of over 5%—assets that require virtually no effort to hold. Just how extreme is this liquidity squeeze? Consider U.S. municipal bonds—traditionally viewed as the most stable, safest asset class, where defaults are considered nearly impossible. The Bloomberg Municipal Bond Index plunged 4.4% in September alone—the worst single-month decline in nearly two decades. Even municipal bonds couldn’t withstand frenzied selling, indicating that certain institutions in the market have become so starved of liquidity that they’re dumping all assets indiscriminately—and at any cost. When this storm reaches ordinary American households, it delivers a heavy, muffled blow. U.S. mortgage rates surged this week by the largest weekly jump in four years. Bear in mind: this occurs just before a pivotal midterm election. The public’s mounting anger over unaffordable homes and unmanageable monthly payments is now squarely on the fire. Why have U.S. Treasury yields skyrocketed to such extremes? Because the inflation specter—long feared by everyone—has not vanished; instead, it has crawled back up the arteries of industry. The key catalyst? Diesel. U.S. retail diesel prices today soared to $6.53 per gallon—a new record—and have surged a staggering 83% year-to-date. NYMEX heating oil futures have likewise spiked to around $5.26 per gallon. Diesel is entirely different from the gasoline we use in passenger vehicles. Virtually all U.S. trucking, agricultural sowing, ocean shipping, and heavy mining operations rely entirely on diesel. Its soaring costs rapidly permeate every shelf in supermarkets—from loaves of bread to bottles of milk—locking inflation expectations firmly at elevated levels. The fire continues spreading outward. In the Middle East, Kuwait’s crude oil output dropped sharply by 200,000 barrels per day month-on-month in September, falling to 1.77 million bpd—supply continues tightening. Although Russian Deputy Prime Minister Novak announced today that Russia would ‘consider’ partially lifting diesel export restrictions if oversupply emerges, the word ‘consider’ implies merely sketching a distant solution—offering no relief for immediate needs. Europe is already reeling under the dual blows of diesel shortages and inflation. According to CCTV News, French President Macron urgently called on the G7 to convene immediately for coordination—and even proposed that member countries jointly release massive volumes from strategic petroleum reserves to suppress prices. Although international oil prices dipped briefly after the announcement, and European equities rebounded momentarily, everyone knows full well that releasing reserves only buys a few extra days of breathing room—the underlying structural supply deficit remains unchanged. Europe’s own economic thermometer is scorching hot. Eurozone CPI rose 3.8% year-on-year and 0.6% month-on-month in September—sturdier than widely anticipated. The U.S. Treasury storm has crossed the Atlantic, dragging European bond markets into an abyss. Thursday witnessed a bloody ‘Black Thursday’ across European debt markets. France became the unluckiest epicenter of the storm. France’s 10-year government bond yield surged to 4.96%, widening the yield spread between French and German 10-year bonds to 130 basis points. That figure hasn’t been seen since the 2012 Eurozone debt crisis.

Russia Considers Partial Lifting of Diesel Export Ban Amid Overproduction, Novak Says

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Russia Considers Partial Lifting of Diesel Export Ban Amid Overproduction, Novak Says

Russia Considers Partial Lifting of Diesel Export Ban Amid Overproduction, Novak Says

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