Cuba: Energy

Domestic

US Republican lawmakers are taking credit for halting oil shipments to Cuba, with some proposing tariffs on countries that supply fuel to the island. This has generated significant political controversy in Mexico, where the administration of President-elect Sheinbaum faces questions about its oil supply to Cuba, though officials are keeping details of the shipments confidential.

International

The primary development this month is the declaration of a US national emergency over Cuba and the signing of an order allowing for tariffs on any country supplying oil to the island. This policy is aimed at severing Cuba's economic lifelines, particularly its access to Venezuelan oil. The immediate effect has been severe, reportedly leaving Cuba with only 15 to 20 days of oil reserves. In response to the US threat, Mexico's state oil company Pemex canceled a scheduled shipment to Cuba, and Mexico has now paused its oil shipments altogether. President Sheinbaum stated the shipments were small and not increased, but the pause follows international pressure. Concurrently, Cuba faces serious economic trouble from the potential loss of cheap Venezuelan oil, risking major electricity and transportation shortages. The Community of Latin American and Caribbean States has defended Venezuela's right to send oil to Cuba and offered to mediate talks with the United States.