Mexico has ramped up its oil shipments to Cuba in anticipation of the ongoing Venezuelan crisis, despite potential sanctions for violating U.S. embargo laws on the island. Mexican media reported on Saturday that crude oil exports to the largest Caribbean island now account for a quarter of Cuba's needs, with the rest supplied by Venezuela. However, Petróleos Mexicanos (Pemex) increased its crude oil exports to Cuba this year, as Venezuela reduced its shipments earlier in the year due to higher demand driven by the temporary lifting of U.S. sanctions.
According to the newspaper La Vanguardia, from January to March, Gasolinas Bienestar, a Pemex subsidiary, sold 21.8 thousand barrels of crude oil daily to the island, a 30% increase from the 16.8 thousand barrels shipped between July and December of 2023. Additionally, Pemex exported 3.6 thousand barrels per day of gasoline and other petroleum products to Cuba, a 9% rise compared to last year.
A report from the company, reviewed by the newspaper, indicates that "in the three months ending March 31, 2024, Gasolinas Bienestar, S.A. de C.V. exported 21.8 thousand barrels of crude oil per day and 3.6 thousand barrels of petroleum products, totaling 3.3 billion pesos [200 million dollars]." The University of Texas estimates that Mexico's exports to Cuba cover a quarter of the island's needs, with the remainder provided by Venezuela.
Despite threats of sanctions against Pemex by the United States, which considered withdrawing an $800 million loan, the government of Andrés Manuel López Obrador decided to send the oil through subsidiary companies. According to Gonzalo Monroy, director of the consulting firm GMEC, this is a purely political decision, as it is being carried out via the Gasolinas Bienestar subsidiary rather than PMI, Pemex's international trade subsidiary, which operates in the U.S. and is subject to sanctions.
Frequently Asked Questions About Mexico's Oil Shipments to Cuba
Here are some frequently asked questions regarding Mexico's increased oil shipments to Cuba and the implications of the Venezuelan crisis and potential U.S. sanctions.
Why has Mexico increased its oil shipments to Cuba?
Mexico has increased its oil shipments to Cuba in response to the reduced supply from Venezuela and the ongoing crisis there. This move is also seen as a way to support Cuba amid these challenges.
What are the potential consequences of these shipments for Pemex?
Pemex could face sanctions from the United States for violating embargo laws. These sanctions could include the withdrawal of an $800 million loan.
How significant are Mexican oil exports to Cuba?
Mexican oil exports account for a quarter of Cuba's oil needs, with the rest supplied by Venezuela.