U.S. Eases Restrictions for Reselling Venezuelan Oil to Cuba: A Step Towards Alleviating Fuel Crisis

The U.S. Treasury Department now allows companies to seek licenses to resell Venezuelan oil to Cuba, potentially easing the island's severe fuel shortage. This decision follows the U.S. control over Venezuela's oil exports post-capture of Nicolas Maduro, affecting Cuba's energy supplies. However, Cuba must still navigate financial barriers to make purchases.

In a significant policy shift, the U.S. Treasury Department will permit companies to apply for licenses to resell Venezuelan oil to Cuba, potentially easing the island's fuel crisis. According to the department's statement, this move comes after Washington began regulating Venezuela's oil exports following the capture of leader Nicolas Maduro.

For over two decades, Venezuela served as Cuba's main crude supplier, a relationship halted since January, intensifying Cuba's energy issues. With alternate supplier Mexico also pausing shipments, the island faces mounting power and transportation challenges. Notable trading firms such as Vitol and Trafigura continue to manage a substantial portion of Venezuelan oil, complicating the island's access.

The policy change, however, raises questions regarding Cuba's ability to afford oil under standard commercial terms, requiring bank guarantees and cash payments. U.S. Secretary of State Marco Rubio is engaging Caribbean leaders on this evolving situation, amid concerns that Cuba's humanitarian challenges could destabilize the region.