While Cuba has depended on Venezuelan crude oil for far too long, the country has had to find a new source of oil since oil supplies from Caracas were no longer an option. While it was supposedly believed that the U.S. president and the rest of the world thought that Cuba was ready to fall, the tropical island managed to find a reliable source of replacement barrels. One country has stepped in to save the day. Although political leaders allegedly felt that Cuba had reached a critical threshold, other analysts allege that it is still too early to say Cuba has reached a critical space.
Cuba experiences an unexpected increase in crude oil
Shipments to Cuba increased in the past year since one country, close to the U.S. shore, is stepping in. According to the analytics company, Kplr, a supposed average of 12,284 barrels per day had been sent to the island in the last year. As per this daily shipment, the crude oil received made up 44% of the Cuban oil imports.
Venezuela, which was Cuba’s largest supplier, would allegedly supply more or less 9,528 barrels per day. When Venezuela cut off the supply of oil to the island, it was believed that Cuba’s oil share would be significantly lowered. Thus, this new supplier would then have taken over the position of Cuba’s biggest crude oil supplier. Nevertheless, analysts caution that it is never a good idea to jump to such conclusions.
With Venezuelan supplies decreasing, pressure escalates
The United States has escalated efforts to restrict Venezuelan crude exports. This caused much political tension since Cuba had always been tied to Venezuela’s oil sector. President Nicolás Maduro’s government surely felt the pressure. Yet again, analysts assumed that all oil deliveries to Cuba would be disrupted.
The effect on the Cuban economy was also noted, whereby the country experienced regular power outages, fuel shortages, and economic hardships. In the process, tourism revenue supposedly declined as well.
Analysts say that the assistance from the country may have softened the blow slightly. The exports provided to the country surely helped, although there remains much uncertainty about how long this country can continue to sustain Cuba’s oil demand.
The effects of diplomatic tensions on the rise
If this country continues supplying Cuba with crude oil, it is assumed that bilateral trade could also face rather severe consequences. It has supposedly been said that oil exports from this country further slowed after U.S. scrutiny last year. The country that has become the lifeline for Cuba would now have to tread very carefully, as it does not want to have its political and economic realities affected in terms of trading with America.
It is supposedly apparent that by this country stepping in and providing Cuba with crude oil, America’s effort to restrict Venezuelan oil flow has been somewhat constrained. Nevertheless, it has yet to be seen if this lifeline can be sustained or if the oil flows to the island will be restricted, yet again. With Russia, Iran, and Venezuela teaming up to beat America, Earth domination may be possible, but tension may escalate as well.
The country, close to the U.S. shore, that stepped in
It was a state-owned oil company in Mexico that stepped in and came to Cuba’s rescue. The state-owned oil company, Pemex, and its subsidiary, Gasoline Binestar, supposedly provided a large amount of crude oil daily for nine months. It is assumed that the number of barrels provided is higher than the original estimates provided by Kpler. The Mexican President had, however, stated that all oil exports to Cuba had been conducted according to the legal framework of sovereign nations and emphasized that all the transactions had been lawful.
While it supposedly seems as if Mexico is using its economic ties with the United States to provide support to Cuba, we will have to wait and see what political tensions continue to unfold. For now, the interest in Russian oil sanctions continues to brew as well.
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