Venezuela significantly increased its oil shipments to its political ally Cuba in May, reaching 70,000 barrels per day (bpd) compared to 23,000 bpd in the previous month. This figure is notably higher than the 2023 average of 56,000 bpd and the 34,000 bpd reported in February of this year, providing some relief to the island's regime despite ongoing widespread blackouts and the recurring excuse of a "lack of fuel."
Reuters reported that Venezuelan oil exports rebounded in May as clients of the state-owned company PDVSA rushed to receive shipments before the reimposition of U.S. sanctions on the South American country. In April, the U.S. Treasury Department did not renew the license that allowed free oil exports, but gave companies until the end of May to complete transactions, including the sale of crude oil and fuel. According to the news agency, a total of 50 ships departed from Venezuelan waters last month, averaging 708,900 bpd of crude and fuel, and 614,000 tons of petrochemicals and oil by-products, based on internal PDVSA documents and shipping data from financial firm LSEG.
More than a third of that total—250,000 bpd—ended up in Asia; the United States was the second-largest recipient, averaging 205,000 bpd through Chevron, and Europe received 129,000 bpd. The volume of oil shipped in May was 30% higher than in April and 7% above the same month last year. In fact, the exports of petrochemicals and by-products were the highest in the last 13 months.
However, uncertainty looms again due to U.S. sanctions, which could directly impact Cuba's electrical situation, given the importance of Venezuela in its oil import volumes. While blackouts in the Caribbean nation are mainly due to a lack of investment and maintenance in the electrical infrastructure, the reliance on imported fuels remains a significant hurdle for a government that keeps several provinces with power outages lasting more than 20 hours a day.
President Miguel Díaz-Canel himself stated that there are no guarantees that the summer months will pass without disruptions: "Electricity cuts will increase this month (May) and next (June) due to the increased maintenance work on thermoelectric plants, aiming to ensure service in July and August."
"We will have prolonged maintenance until June to minimize the inconvenience of blackouts in the summer, especially in July and August," he noted in a program he hosts on YouTube.
Impact of Venezuelan Oil Shipments on Cuba
Given the increased oil shipments from Venezuela to Cuba, here are some key questions and answers to understand the implications.
Why did Venezuela increase oil shipments to Cuba in May?
Venezuela increased oil shipments to Cuba in May as clients of PDVSA hurried to receive shipments before the reimposition of U.S. sanctions.
How does the increased oil shipment impact Cuba's energy situation?
While the increased oil shipment provides some relief, Cuba continues to face widespread blackouts primarily due to a lack of investment and maintenance in its electrical infrastructure.
What are the main destinations for Venezuelan oil exports in May?
In May, the main destinations for Venezuelan oil exports were Asia, the United States, and Europe.