• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 1 min Could Venezuela become a net oil importer?
  • 1 hour Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 4 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 3 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 5 mins Why is permian oil "locked in" when refineries abound?
  • 4 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 12 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 16 hours Teapots Cut U.S. Oil Shipments
  • 44 mins Oil prices going down
  • 7 hours Saudi Arabia turns to solar
  • 7 mins Gazprom Exports to EU Hit Record
  • 1 hour Could oil demand collapse rapidly? Yup, sure could.
  • 17 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 21 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 4 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
The Last Oil Frontier In The Gulf Of Mexico

The Last Oil Frontier In The Gulf Of Mexico

The potential of the U.S.…

Australia Looks To Tackle Its Looming Gas Shortage

Australia Looks To Tackle Its Looming Gas Shortage

The world’s soon-to-be top liquefied…

Erwin Cifuentes

Erwin Cifuentes

Erwin Cifuentes is a Contributing Editor for Southern Pulse Info where he focuses on politics, economics and security issues in Latin America and the Caribbean.…

More Info

PDVSA Slashes Venezuelan Oil Exports To Cuba

Maduro

PDVSA of Venezuela has drastically cut the quantity of oil exported to Cuba in what may signal a possible shift in the Latin American state’s energy diplomacy.

According to a Reuters report published on 8 June, PDVSA sent approximately 53,500 barrels of crude per day to Cuba in 2016. This represents a 40 percent drop in crude received by the island in comparison to the first six months of 2015.

Venezuela has partially offset the smaller crude shipments to Cuba by boosting exports of refined products including fuel oil, diesel and liquefied petroleum gas (LPG). Nevertheless, total shipments to Cuba (including crude and products) in the first half of this year have declined by 19.5 percent to 83,130 barrels per day.

Cuba has received oil with preferable conditions from Venezuela as part of the eleven-year-old Petrocaribe alliance of fifteen countries, most of which are located in the Caribbean. Some 4 percent of Venezuelan oil exports are sent to Cuba and the country has largely been spared of the aftermath from PDVSA's growing cash flow problems, which already undermined oil supplies to countries in the region, including Petrocaribe members Jamaica and the Dominican Republic.

The Venezuelan oil industry has been hampered by several factors such as the low price of crude, strong reliance on a weakened power grid system and a lengthy drought. Despite a decline in production, Venezuelan President Nicolas Maduro on 22 May reaffirmed his country’s commitment to Petrocaribe.

Related: Has Google Overtaken Tesla In The Self-Driving Car Race?

“In today's world, there are huge economic threats against us and we might feel that uncertainty could prevail. However, we are fully convinced that in the last 10 years, PetroCaribe has clearly demonstrated that it is only together that we can achieve development and happiness for our people,” Maduro said at the time.

Venezuela’s oil woes have also affected relations with neighboring Colombia after the Maduro regime last August ordered the closing of the border. The government claimed that the move was needed to combat crime and smuggling in the border region. Yet the measure halted the flow of basic goods and medicine to a Venezuelan state facing shortages and long lines at supermarkets.

An estimated 35,000 people flocked into the Colombian city of Cucuta on 10 June after the border was reopened during a twelve-hour period. Supermarket and store shelves where emptied by the mid-morning hours, as reported by PressTV.

By Erwin Cifuentes for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News