Tanker Carrying Russian Oil Diverts From Cuba as Shortages Bite
A tanker believed to be carrying Russian oil to fuel-starved Cuba diverted away, a move that’s likely to worsen shortages on the Caribbean island.
The ship Sea Horse halted its voyage Wednesday and is now drifting in the North Atlantic Ocean, according to vessel-tracking data. The tanker is likely carrying 200,000 barrels of Russian gas oil, based on shipping analytics from Kpler Ltd., whose lead analyst previously identified the cargo following a ship-to-ship transfer off Cyprus.
Cuba’s Fuel Shortages Worsen
The diversion comes as Cuba faces acute shortages of fuel needed to power everything from stoves to buses and homes, leaving much of the country grappling with prolonged blackouts. Available power has fallen sharply since the start of the year, and satellite imagery has shown nighttime light levels down by as much as 50%.
US Enforcement Efforts Intensify
The diversion follows similar moves by other tankers. Earlier this month, the Ocean Mariner, carrying about 30,000 barrels of Colombian diesel, diverted from Cuba and appears to have discharged in the Bahamas, according to shipping data. US enforcement actions have already resulted in the seizure of at least ten vessels accused of transporting sanctioned oil.
Alternative Fuel Sources Emerge
As the humanitarian crisis deepens, the US has eased some restrictions by allowing fuel shipments to Cuba‘s budding private sector as part of a plan to make the island more reliant on US supplies. The US has also indicated that it is open to issuing specific licenses to companies interested in supplying Cuba with Venezuelan oil.
Sea Horse‘s Decision Sparks Concern
The Sea Horse‘s decision to turn away follows similar moves by other tankers, sparking concerns about the impact on Cuba‘s already dire fuel situation. The diversion is likely to worsen shortages and prolong blackouts, leaving Cubans struggling to access essential services.
With assistance from Lucia Kassai.
Original Article: Tanker Carrying Russian Oil Diverts From Cuba as Shortages Bite | Financial Post — Financialpost