Thursday, May 04, 2017

Cuba Needs Oil

Russia has started shipping more oil to Cuba, as the Cuban government understandably fears the effects of Venezuela's disintegration.

According to Jorge Pinon, an oil expert at the University of Texas at Austin, the Cuba deal is equivalent to around 1,865,000 barrels and valued at $105 million at current prices. 
In comparison, Russia reported it shipped oil products to Cuba from 2010 through 2015 valued at $11.3 million. 
Cuba consumes 22,000 barrel per day of diesel and 140,000 barrels per day of oil products.

So an increase, but not a massive amount. And not a return to the glory days of subsidized Soviet oil shipment.

The lesson to take from this, though, is that the embargo can have an adverse effect on U.S. interests. If the U.S. were selling oil to Cuba, Russia wouldn't be news.


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