The U.S. Treasury Department said that it would allow companies to apply for licenses to resell Venezuelan oil to Cuba’s private sector on Wednesday — a move that could help ease the island’s worsening fuel shortage.
The guidance states that any prospective transactions must “support the Cuban people, including the private sector,” and clarifies that dealings involving or benefiting the Cuban military or other government entities would not qualify.
Dutch-trader Vitol and Singapore-based trader Trafigura are now handling the bulk of Venezuela’s oil exports, sending millions of barrels to destinations including the United States, Europe, and India, along with millions of additional barrels held in storage at Caribbean terminals for future resale.
When last checked, crude oil futures were trading 0.21% higher at $65.56 per barrel.
Cuban Oil Crisis Worsens
After the U.S. assumed control of Venezuela’s oil exports in January following the capture of former President Nicolás Maduro, Venezuela’s long-standing oil shipments to Cuba were halted. The move deepened the island nation’s energy crisis, disrupting power generation and limiting fuel supplies for vehicles, households, and aviation.
Venezuela had been the primary supplier of crude and fuel to Cuba for over 25 years through a bilateral pact mostly based on the exchange of products and services. Earlier this month, Trump called Cuba a “failed nation” amid an oil blockade. “It’s really a humanitarian threat,” the president said.
In January, President Donald Trump had also signed an executive order targeting countries that supply oil to the island, describing the move as part of a broader pressure campaign on Havana. Cuban President Miguel Díaz-Canel criticized the move as an attempt to “suffocate” Cuba’s struggling economy and called it unjust.
Meanwhile, the U.S. has shifted the flow of Venezuelan oil revenue directly into a U.S. Treasury account from a U.S.-controlled bank account in Qatar. Energy Secretary Chris Wright said Venezuelan oil sales have surpassed $1 billion.
Notably, the Treasury’s action follows an incident on Wednesday in which Cuban authorities said a Florida-registered speedboat exchanged gunfire with border guards in Cuban waters, resulting in four deaths. Secretary of State Marco Rubio said the U.S. would “respond appropriately” based on information.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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