In a significant escalation from the previous year, Mexico's state-owned oil company, Petróleos Mexicanos (PEMEX), exported $500 million worth of oil to Cuba between January and September 2024. This data was disclosed in a report submitted by PEMEX to the U.S. Securities and Exchange Commission, as reported by El Financiero.
During the specified period, PEMEX delivered an average of 31,300 barrels of crude oil daily, along with 2,900 barrels of other petroleum products to the island. This total volume marks a 25% increase compared to the $400 million recorded in 2023, underlining Mexico's increasingly crucial role as a lifeline for the Cuban regime. The island faces ongoing power outages amid an energy crisis, exacerbated by reduced shipments from Venezuela.
Historically, Venezuela sent about 53,000 barrels per day to Cuba, but those shipments dwindled to 25,000 barrels since September 2023. To compensate for this decline, PEMEX, through its subsidiary Gasolinas Bienestar, has ramped up its deliveries.
"While the Russians have not fulfilled their commitments to send oil to Cuba, and Venezuela has slashed its exports, Mexico has kept a steady supply," stated Jorge Piñón, a senior research fellow at the University of Texas Energy Institute.
The PEMEX report indicates that Cuba predominantly receives Istmo light crude, which is more compatible with the island's refining capabilities. In contrast, Mexico's heavier Maya crude is unsuitable due to the technological limitations of Cuba's refineries.
Despite Mexico's increasing support, questions linger regarding Cuba's payment methods for these shipments. Although specific payment terms remain undisclosed, speculation suggests the transactions might involve some form of barter, potentially linked to Cuban doctors working in Mexico as part of health cooperation agreements.
President Claudia Sheinbaum emphasized at the start of her administration that Mexico would supply fuel to Cuba "on humanitarian grounds." In the previous year, faced with potential U.S. sanctions or the withdrawal of a significant loan, PEMEX denied that its $200 million oil supply to Cuba in 2023, as noted by the University of Texas Energy Institute, was a donation.
Impact of Mexican Oil Exports to Cuba
Why has Mexico increased its oil exports to Cuba?
Mexico has increased its oil exports to Cuba to fill the gap left by Venezuela's reduced shipments, providing crucial energy support amid Cuba's ongoing power crisis.
What type of crude oil does Cuba receive from Mexico?
Cuba primarily receives Istmo light crude oil from Mexico, which is more suitable for the island's refining capabilities compared to the heavier Maya crude.
How does Cuba pay for the oil imports from Mexico?
The specifics of Cuba's payment for Mexican oil imports are unclear, but there is speculation that the transactions might involve barter arrangements, possibly involving Cuban medical professionals in Mexico.