Tanker Carrying Fuel Likely Bound for Cuba Stops
A Hong Kong-flagged tanker carrying fuel likely bound for Cuba has halted navigation in the Atlantic Ocean, ship tracking data showed on Wednesday, a blow for the oil-thirsty Caribbean nation.
The tanker Sea Horse loaded through a ship-to-ship transfer in the Mediterranean before departing towards the Caribbean Sea, according to monitoring service TankerTrackers.com. The vessel had been expected to arrive in Cuban waters later this week, according to its speed and trajectory.
US Allows Resale of Venezuelan Oil to Cuba
The U.S. Treasury Department said on Wednesday it would authorize companies seeking licenses to resell Venezuelan oil to Cuba, according to guidance posted on the department’s website, a move that could help ease the island’s acute fuel scarcity.
Since Washington took control of Venezuela’s oil exports in early January in the aftermath of the capture of Venezuelan leader Nicolas Maduro, the South American country’s supply to Cuba has ceased, worsening an energy crisis in the communist-run country that is hitting power generation and fuel for vehicles, houses, and aviation.
Venezuela had been for more than 25 years the main supplier of crude and fuel to its political ally Cuba through a bilateral pact mostly based on barter of products and services. Mexico, which had emerged as an alternate supplier, also has halted shipments to the Caribbean island since a fuel cargo arrived in Havana in January, according to shipping data.
Undelivered Fuel Cargoes
The U.S. pressure on Venezuela and Cuba has left several fuel cargoes undelivered since December, contributing to the island’s inability to keep the lights on and cars circulating.
A Cuba-related vessel that loaded Venezuelan gasoline in early February at a port operated by state-run company PDVSA remained this week anchored in Venezuelan waters waiting for authorization to set sail. The ship had previously loaded Venezuelan jet fuel, but returned its cargo, a company document showed.
The U.S. Treasury’s guidance also makes clear that potential transactions must “support the Cuban people, including the private sector,” including exports for commercial and humanitarian use in Cuba, while transactions involving or benefiting the Cuban military or other government institutions would not be covered.
The U.S. Bureau of Industry and Security had previously released guidance saying that exports and re-exports of U.S. gas and petroleum products to eligible Cuban private sector entities would be authorized.
Cuba‘s government controls motor fuel distribution and power supply through state companies, but fuel consumers also include private airlines and other companies.
The Treasury Department said applicants do not necessarily need an established U.S. entity, and limitations in a license granted in January to broadly export Venezuelan oil would not apply to Cuba.
Original Article: Tanker Carrying Fuel Likely Bound for Cuba Stops — Marinelink