Unable to process Venezuela's heavy oil, Cuba turns to Russia, Mexico

Record ID: 1722398

  • Title: Unable to process Venezuela's heavy oil, Cuba turns to Russia, Mexico
  • Date: 26th April 2023
  • Summary: HAVANA, CUBA (APRIL 25, 2023) (REUTERS) OIL REFINERY NICO LOPEZ ENTRANCE VARIOUS OF TRUCKS OUTSIDE REFINERY OIL TANKER TRUCK LEAVING REFINERY HAVANA, CUBA (APRIL 24, 2023) (REUTERS) CUBA PETROLEUM ‘CUPET’ OIL TANKER TRUCK FILLING STATION DEPOSITS CUPET SIGN
  • Embargoed: 10th May 2023 12:10
  • Keywords: Cuba Energy Filling station Fuel Oil Shortage
  • Location: HAVANA, CUBA
  • City: HAVANA, CUBA
  • Country: Cuba
  • Topics: South America / Central America,Economic Events
  • Reuters ID: LVA001781825042023RP1
  • Aspect Ratio: 16:9
  • Story Text: Cuba increasingly is turning to Russia and Mexico for oil to ease an acute shortage of diesel and gasoline and supplement dwindling supplies of Venezuelan crude and fuel, according to internal data and sources.
    Venezuela for more than two decades has been Cuba's main political ally and largest provider of crude and fuel to the island nation, delivering fuel oil for power generation, gasoline, diesel, jet fuel and cooking gas.
    But the South American nation's struggle to produce enough fuel for its own needs have left it unable to fully feed its Caribbean neighbor. Venezuela's oil exports to Cuba so far this year have dropped to 55,000 barrels per day (bpd) from almost 80,000 in 2020.
    Under President Andrés Manuel López Obrador, Mexico has sent a rising volume of fuel to the communist-run nation, according to Refinitiv Eikon vessel tracking data. Cuba has also imported since November at least five cargoes from Russia, a long-time supplier, as well as fuel from Caribbean terminals and Europe, that data shows.
    A tanker owned by Mexican state oil firm Petroleos Mexicanos (PEMEX), the Bicentenario, since April has discharged twice at a Cuban refinery in Havana, among the few that produce gasoline on the island, according to the Eikon data and TankerTrackers.com.
    The ship was seen as recently as Sunday (April 23) departing from Havana Harbor.
    A separate, independently-owned vessel, the Panama-flagged Fortunato, has also twice visited Cuban ports since January from Mexico's Salina Cruz terminal carrying liquefied petroleum gas (LPG), typically used for cooking, the data showed.
    The fuel, though not enough to soak up demand, may prove a lifeline for the crisis-plagued administration of Miguel Diaz-Canel, which has imposed rationing, prompting days-long lines for gas, diesel and propane across the Caribbean island.
    Lidia Rodriguez, Commercialization director of Cuban state oil company Cupet, this week told local media Cuba had low stocks of diesel and gasoline, and particularly low inventories of crude that its refineries can process.
    "(We are trying) to avoid total fuel scarcity in the country," she said, referring to the rationing.
    Cuba's government said last week its traditional fuel suppliers had fallen short on their commitments. Officials also blame U.S. sanctions, which complicate the financing and transport of fuel to Cuba, for the crisis.
    A Pemex source who asked for anonymity because was not authorized to speak publicly said the company has recently supplied crude to Cuba, without providing details.
    Mexico, which has previously shipped oil and other aid to Cuba under emergency situations, receives doctors from Cuba and recently signed a deal to import Cuban raw material for a train project.
    Venezuela sent a crude cargo over the weekend to the island and plans to ship more oil and gasoline in the coming days, according to PDVSA's schedules.
    (Production: Anett Rios, Alexander Frometa, Anna Portella)
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