U.S. Eases Restrictions on Venezuelan Oil Sales to Cuba Amid Fuel Crisis

In a significant policy shift, the U.S. Treasury Department announced a relaxation of restrictions, allowing companies to apply for licenses to resell Venezuelan oil to Cuba. This move aims to ease Cuba's acute fuel shortage, which has been exacerbated by Washington's control over Venezuelan oil exports following the capture of Nicolas Maduro.

Venezuela, once Cuba's primary oil provider, has seen its supply lines cut, leaving the island's power generation and vehicle fuel supplies critically low. With Mexico also halting shipments, trading houses Vitol and Trafigura now dominate Venezuela's oil exports, sending millions of barrels to global markets and storing surplus for future resale.

Despite the policy shift, challenges remain for Cuba in acquiring oil without favorable terms, as highlighted by U.S. Secretary of State Marco Rubio. Existing U.S. guidance mandates that oil transactions must benefit the Cuban private sector, excluding government entities. Prospective buyers like Cuba are now expected to adhere to commercial terms such as bank guarantees and cash payments.