Venezuelan oil resale to Cuba allowed under U.S. Treasury guidance

The U.S. Treasury said it will authorize companies to seek licenses to resell Venezuelan oil to Cuba, according to guidance posted by the department. Shipments from Venezuela to Cuba have largely stopped since Washington gained control over Venezuelan oil exports in early January, contributing to fuel shortages on the island.

The U.S. Treasury posted guidance saying it will authorize companies seeking licenses to resell Venezuelan oil to Cuba. Shipments from Venezuela to Cuba largely stopped after Washington took control of Venezuela's oil exports in early January. That stoppage has been linked to worsening fuel scarcity in Cuba, affecting power and transport. Key details: - The Treasury will permit companies to apply for licenses to resell Venezuelan oil to Cuba, as set out in its guidance. - The guidance specifies transactions must "support the Cuban people, including the private sector," and excludes transactions that benefit the Cuban military or government institutions. - U.S. authorities have been controlling Venezuelan oil exports since early January, and cargoes have required authorization to depart. - It remains unclear whether Cuba can afford purchases on standard commercial terms, and some vessels have awaited authorization. Summary: The guidance opens a formal licensing pathway for traders to resell Venezuelan oil to Cuba, which could affect fuel availability on the island. The immediate next step is for companies to apply for licenses; outcomes and the pace of any shipments are undetermined at this time.